Friday 23 February 2018

Shares resume falls as oil rout continues

Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Peter Flanagan

Peter Flanagan

Irish shares fell yesterday, putting an end to a two-day rally, as commodity firms grappled with another decline in crude oil prices.

By the close in Dublin, the ISEQ Overall Index fell 0.46pc, or 29.12 points, to close at 6,327.06.

Like most European markets, the ISEQ fell sharply at the opening and looked set to close much lower before a rally helped to offset earlier losses.

Rare earths miner Kenmare Resources fell the most yesterday, dropping 12.5pc. The banks endured a tough day, with Bank of Ireland sliding 3.6pc to end the session at 30c. AIB was off 3.5pc at €4.92 by the time stumps were drawn in Dublin.

Independent News & Media - the parent of this newspaper - fell 4.2pc to 16c.

International focused stocks were hit badly during the day. Ryanair slid 2.2pc to €14.08, while Smurfit Kappa Group stumbled, giving up 0.6pc to close at €21.75.

Nearly twice as many shares fell as rose on the session, but Petroceltic surged 60.9pc. The struggling explorer may be taken over by shareholder Worldview.

Bookmaker Paddy Power jumped 3.6pc to an all-time high of €128. The firm is set to close its merger with rival Betfair on February 2.

Elsewhere, the oil slide hurt stocks, which fell across Western Europe.

The FTSE 100 in London dropped 0.4pc, while Germany's Dax Index dipped 0.3pc. The Cac 40 in Paris lost 0.6pc while the Stoxx Europe 600 Index slipped 0.6pc.

"Investors are losing faith in equity valuations - you can't justify the multiples we were paying if the world is slowing down. The collapse of oil will continue to take its toll on corporate earnings. There's a lot of event risk this week," said Peter Garnry, head of equities at Saxo Bank.

Irish Independent

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