Business World

Friday 29 August 2014

Shares fall after Draghi's remarks

Colm Kelpie

Published 25/03/2014 | 02:30

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Irish shares were down yesterday after ECB president Mario Draghi's comments
Irish shares were down yesterday after ECB president Mario Draghi's comments

IRISH shares were down yesterday, with the State's two banks falling after comments from Moody's and European Central Bank boss Mario Draghi.

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By the close in Dublin, the ISEQ Overall Index had slipped 1.3pc, or 64.34 points, to end the first trading day of the week at 4850.53.

The Dublin index has risen 6.9pc so far this year and is up 23.6pc over the last 12 months.

European stocks also fell, after posting their biggest weekly advance in more than a month, as world leaders pledged further measures against Russia, and manufacturing gauges slipped in China, Germany and the US.

The leaders on the Dublin market included Aer Lingus, which rose 2.3pc to €1.66, while recruiter CPL Resources closed up 1.4pc to €7.50.

Insurance group FBD rose 0.2pc to €17.75 while IFG Group was up 2.9pc to €1.75.

On the other side of the board, the laggards included Bank of Ireland and AIB, which fell 3.9pc to 30 cents and 4.6pc to 15 cents respectively as ECB President Mario Draghi warned that outstanding issues remained in the Irish banking sector.

And on Friday, Moody's issued a statement warning that some banks, excluding Bank of Ireland, would struggle to raise capital if stress tests exposed losses in the autumn.

Elsewhere, the Stoxx Europe 600 Index fell 1.1pc to 324.39 at the close of trading in London – its biggest drop since March 7. The benchmark gauge advanced 1.8pc last week as Russian President Vladimir Putin said he won't seek territory beyond Crimea.

"As investors are nervous amid the Crimea crisis and apparent problems in the Chinese economy, stronger numbers would have been important for a continued positive development of the stock markets," said Martin Schlatter, a fund manager at Swiss Rock Asset Management in Zurich.

"A confrontation between the West and Russia is absolutely unwanted."

Irish Independent

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