Ormonde leads losers on poor trading day
Irish stocks fell yesterday, mirroring global trends, as mining companies and banks both slipped. The ISEQ Overall Index was down 54.95 points or 1.07pc by the end of the day, to 5061.38.
Tungsten miner Ormonde Mining saw the biggest losses, slipping 9pc to 5c. The company said on Friday that it had raised another £2m (€2.4m) through a share placing to further advance its flagship Barruecopardo tungsten project in Spain, which has been hit by delays.
Ovoca Gold followed, down 7pc to 8c. All three of the ISEQ Overall Index's banks fell, with Bank of Ireland down 3pc to 31c while AIB shed 3pc to 14c and Permanent TSB slipped 3pc to 11c. Petroceltic fell after a well in Kurdistan disappointed but the fall was much larger in London.
National benchmark indexes retreated in all western-European markets except Iceland. France's CAC 40 fell 1pc and Germany's DAX slumped 1.9pc while the UK's FTSE 100 lost 1pc.
US stocks also fell yesterday, putting the S&P 500 on track for its biggest three-day drop in two months, as investors rotated into defensive names to protect against further declines.
Momentum shares – stocks in fast-growing industries which had seen their stock prices rocket higher in recent weeks – managed to stabilise after their decline helped fuel a sell-off on Friday. But selling pressure migrated to other sectors, with only defensives such as utilities and consumer staples in positive territory among the 10 major S&P sectors.
"We are definitely seeing a little more downside, a continuation from the nasty reversal on Friday," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, Ohio.
"The big concern is the overall underlying weakness in so many different stocks. The picture isn't nearly as pretty when you look under the hood and you see various sectors have clearly broken down and now it's starting to pull down on the whole entire stock market."