Thursday 14 December 2017

ISEQ suffers biggest daily drop in nearly three years

Aer Lingus share prices dropped
Aer Lingus share prices dropped

THE ISEQ suffered its largest daily drop in more than two-and-a-half years yesterday, plummeting by more than 3pc.

The stock exchange closed at 4664.23, down 150 points, as several large firms watched share prices tumble and spectators braced themselves for Moody's latest outlook on Ireland's credit rating.

Shares also fell in London, Europe and the US, where gauges headed for their worst day in a month.

In Dublin, Aer Lingus followed other European airlines when its shares fell by 6.6pc to €1.40 as tour operator Thomas Cook reported a fall in bookings.

Bookmakers Paddy Power had almost 6pc wiped from its price and closed at €51.15, while building materials giant CRH suffered a 4.7pc drop to €19.60.

Shares fell in 28 companies listed on the Iseq during the day, with 17 unchanged and just three seeing small rises – Donegal Investments, Glanbia and finance firm IFG.

The market has not suffered such a daily drop since November 1, 2011, when shares plummeted by more than 4pc.

Across Europe, stocks also fell the most in a month as first-quarter euro-area economic growth missed forecasts and firms posted poor results. The Stoxx Europe 600 Index dropped 0.9pc to 338.5 at the close of trading.

Thomas Cook sank the most in more than two years after saying sales in the first half retreated 6.6pc, and Deutsche Post lost the most in two years after first- quarter earnings missed projections.

"We're lacking positive news momentum," Otto Waser, chief investment officer at R&A Research & Asset Management in Zurich, said. "We had disappointing GDP growth figures from the eurozone. Earnings are a very mixed picture."

In London, UK stocks dropped from their highest level in more than 14 years, which had been recorded on Wednesday.

The FTSE 100 Index lost 37.6 points, or 0.6pc, to 6,840.89 at the close of trading.

Sarah Stack

Irish Independent

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