Irish shares suffer worst percentage drop since crash of 2008
Published 25/06/2016 | 02:30
Irish shares plummeted yesterday, recording their worst percentage drop since the worst of the financial crisis in 2008, as fallout from the UK's vote to leave the European Union played havoc across the world.
By the close in Dublin the ISEQ Overall Index had slumped 7.74pc, or 492.8 points, to 5,878.23.
Equity markets across Europe were thrown into turmoil.
The FTSE 100 in London fell 3.2pc, while the CAC 40 in Paris lost 8pc and Germany's Dax Index dropped 6.8pc. The Stoxx Europe 600 Index fell 7pc.
Currencies saw volatility unseen for years. Sterling fell 6pc against the euro and 7pc against the dollar. The euro fell 2pc against the Greenback.
Bond yields in European peripheral markets spiked more than 15 basis points, while the yield on Irish 10 year debt rose 4.7bps.
Commodities reflected a flight to safety, with West Texas crude oil sliding 4pc while the cost of an ounce of gold jumped 5pc. "This is a historic moment and we're looking into uncharted territory," said Ralf Zimmermann, a strategist at Bankhaus Lampe in Dusseldorf, Germany.
"We expect a lot of volatility in the coming days."
In Dublin, stocks were battered across the board. Around 703bn shares changed hands - the highest daily volume in three years.
Kingspan, which relies heavily on the UK market, fell 21.1pc to €19.80.
Bank of Ireland dropped 20.96pc. Permanent TSB slumped 17.54pc to €1.80. Hotelier Dalata gave up 14.8pc to €4.14. The plunge in sterling will likely hit tourism from the UK to Ireland.
Ryanair dropped 9.83pc to €12.34.
Peer International Consolidated Airlines Group (IAG), which owns British Airways and Aer Lingus, issued a profit warning after the Brexit vote.