ISEQ showed zero growth in 2010
Published 31/12/2010 | 05:00
The Irish stock market looks set to end the year just below where it started. The ISEQ hovered around the 2,880 level for much of the day -- having started 2010 at just under 3,000 -- after another horrific year, particularly for bank shareholders.
AIB will soon suffer the humiliation of being delisted from the index it dominated for decades to find a new home on the Enterprise Securities Market from January 26 next.
Its shares continued to decline in value in Dublin yesterday as investors dumped the stock ahead of the delisting. The shares closed at just over 31c, down from 32c.
The other main Irish bank, Bank of Ireland, fared better, managing to hold its own by remaining at 37c. Irish Life and Permanent was also unchanged at €1.
Otherwise, Kenmare managed to hold on to its gains after a good run earlier this week.
The stock benefited from a stronger performance by mining stocks generally ending at just over 33c. Trading was quiet ahead on the last full-day session of 2010.
The FTSE fell back in relatively quite trading, with falling energy stocks overshadowing the rising mining stocks.
The banks were mainly higher, with Barclays and Lloyds recovering from recent falls over worries about eurozone debt exposure.
European stocks dropped the most in a month amid speculation that this year's rally has pushed valuations on equities beyond the outlook for corporate and economic growth
The Stoxx 600 lost 1.3pc to 277.12 in London, the biggest drop since November 29 and trimming its gain for 2010 to 9.2pc. Stocks have climbed this year as surging corporate profits and actions by central banks to support growth overcame concern that Europe's sovereign-debt crisis would derail the recovery.
The advance has driven the value of the Stoxx 600 to about 12 times the estimated profits of its companies, the highest level in eight months, according to data compiled by Bloomberg.
Volumes in stocks traded have tumbled this week amid the Christmas and new year holidays. About 1.3 billion shares of companies in the Stoxx 600 changed hands yesterday, compared with a daily average of about 4.2 billion over the past year.
European stocks slid yesterday even after better-than-estimated reports on US unemployment and home sales.
First-time filings for unemployment insurance decreased by 34,000 to 388,000 in the week ended December 25, compared with the median forecast of 415,000, labour department figures showed yesterday in Washington.