Irish shares plummet after Ryanair slumps on back of profit warning
IRISH shares had plummeted by mid-afternoon yesterday, led by the slump in Ryanair's stock on the back of its profit warning.
By lunchtime in Dublin, the ISEQ Overall Index was down 2.2pc, or 98.13 points to 4136.58.
The Dublin market dropped on opening and had begun to gradually recover by late morning, but it remained well in the red.
Ryanair's share price fall led the laggards, with its stock down 11.7pc to €5.98 at 1.05pm.
This compares with a high of €7.47 on February 2.
The carrier said increased competition and Europe's continued economic problems were having an impact on fares and the amount of money it makes per passenger, denting profit hopes. There also appeared to be a knock-on effect with Aer Lingus, in which Ryanair holds a near 30pc stake.
The former flag carrier was down 6.3pc to €1.57 by early afternoon.
The state's two pillar banks – AIB and Bank of Ireland – were also down. Bank of Ireland's Richie Boucher was yesterday giving evidence to the Oireachtas Finance Committee while AIB chief David Duffy was grilled on Tuesday. AIB was down 2.7pc to 7c while Bank of Ireland dropped 2.5pc to 22c.
On the other side of the board, the early leaders included food company Glanbia, which was up 0.5pc to €9.93, while Kenmare Resources had increased 2.5pc to 33c.
Fruit company Fyffes fell 0.7pc to 76c and speciality baker Aryzta was down 0.4pc to €47.95.
European stocks retreated for a second day as Ryanair led a decline by travel and leisure companies.
The Stoxx Europe 600 Index retreated 0.4pc at 12.04pm in London. Britain's FTSE 100 slid 0.4pc at 12.35pm, while France's CAC40 was down 0.8pc at 11.37pm and Germany's DAX had slid 1pc at 1.43pm.
"September may be relatively difficult," Guillaume Duchesne, an equity strategist at BNP Paribas, said in Luxembourg. "You have a lot of risk in the coming weeks with the situation in Syria."
Ryanair slumped after Europe's largest discount airline said full-year profit may fall short of its forecast range.
EasyJet slid 6.4pc while ProSiebenSat.1 Media lost 5.4pc after a holding company for investments owned by KKR & Co and Permira Advisers said it is selling shares in the German broadcaster.
On the other side of the Atlantic, US stock-index futures were little changed, after equities rose to a one-week high, before the Federal Reserve publishes its survey of the economy and a Senate committee votes on military action against Syria. (Additional reporting Bloomberg).