Thursday 23 November 2017

Ryanair leads slump in stocks

Sarah McCabe

Sarah McCabe

RYANAIR drove losses on the ISEQ yesterday, after the airline issued its second profit warning of the year.

The ISEQ Overall Index closed down 27.11 points, or 0.62pc, to 4,365.32. Ryanair's share price was slashed by 13pc, its biggest tumble in five years, after the carrier cut its earnings forecast amid higher competition and a weaker economy.

It closed at €5.33, down from the lofty heights of €7-plus that it peaked at earlier this year. Aer Lingus followed apace – it was down 8pc to €1.32.

AIB saw the biggest gains of the day. It was up 6pc to 10c. The bank announced a new deal with the Irish Mortgage Holders Association yesterday which will see the consumer group take on a new mediator role to speed up mortgage deal negotiations.

Some 22.7pc of AIB's mortgages were in arrears of 90 days or more by June.

Reports over the weekend suggested that the Government will introduce a new system to fast-track the repossession of investment properties in mortgage arrears, which Goodbody stockbrokers said shows further progress in its attempts to expedite the mortgage resolution process.


In Europe, stocks rose to a five-year high as HSBC reported increased profit and investors awaited this week's interest-rate decision from the European Central Bank. National benchmark indexes rose in 14 of 18 western European markets. The UK's FTSE 100 and France's CAC 40 added 0.4pc, while Germany's DAX gained 0.3pc.

Bank of America, UBS and Royal Bank of Scotland forecast the ECB will cut rates at the meeting on Thursday, according to a Bloomberg News survey, with the rest predicting no change – the ECB last lowered rates in May to a record 0.5pc.

HSBC climbed the most in two months as Europe's biggest bank said pre-tax profit was up 30pc. PostNL rallied 7.8pc after the Dutch postal operator raised its income guidance.

Elsewhere in the UK, EasyJet, Europe's second-biggest discount carrier, fell 5.1pc to £12.30 (€14.50) as the effects of Ryanair's profit warning reverberated internationally.

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business