Thursday 22 March 2018

Bad start to week for the banks

Peter Flanagan

Peter Flanagan

IRISH shares fell yesterday as global markets began the week on the back foot. By the close in Dublin, the ISEQ Overall Index had declined 0.1pc, or 5.65 points, to end at 4,325.96.

That is still barely 80 points off the index's four-year high, which it hit a week ago.

The banks had a particularly difficult day. Bank of Ireland dropped 2.7pc to 26c, while Allied Irish Banks slumped 9.1pc to 10c. Permanent TSB lost a similar percentage to close at 4c.

Cider maker C&C, which reports half-year results later this week, dropped 1.1pc to €4.03.

Airlines had a tough Monday. Ryanair slid 1.6pc to €6.06, while Aer Lingus closed at €1.39, a decline of 0.8pc. The big winner was Independent News & Media, which surged 9.4pc to close at 12c.

Kerry Group added 1.4pc ahead of its third-quarter results later this week.

European stocks declined, snapping a three-week rally for the Stoxx Europe 600 Index as US factory production and home sales missed forecasts.


The CAC 40 dropped 0.5pc, while the DAX Index lost 0.1pc. The FTSE 100 added 0.1pc and the Stoxx 600 slipped 0.2pc.

"We have hit the point now where markets are questioning more and more what could drive the markets up further," said Raimund Saxinger, a fund manager at Frankfurt-Trust Investment.

"We have seen quite a significant move, but it is running out of steam now."

Volvo dropped 4.3pc as Natixis cut its rating to neutral from buy. The shares tumbled last week after the firm reported a drop in operating profit.

Technip fell 2.1pc. Europe's second-biggest oilfield services provider will not pay employees a share of 2013 earnings because of insufficient orders.

Banco Santander and BBVA, Spain's biggest lenders, dropped 2.8pc each as a gauge of banking stocks in the Stoxx 600 dropped 0.8pc.

TNT Express climbed 4.3pc even after the package-delivery company reported a decline in sales and operating income. It said it will step up restructuring efforts, without providing further details.

Irish Independent

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