Tuesday 21 November 2017

Will they or won't they? UK hits shares

Britain's Chancellor of the Exchequer George Osborne (C) joins Xavier Rolet, CEO of the London Stock Exchange as he attends the inauguration of the ceremonial market opening in London. Photo: Reuters
Britain's Chancellor of the Exchequer George Osborne (C) joins Xavier Rolet, CEO of the London Stock Exchange as he attends the inauguration of the ceremonial market opening in London. Photo: Reuters
Peter Flanagan

Peter Flanagan

IRISH shares fell once again, as the countdown moved a day closer to the possibility of the UK leaving the European Union.

By the close in Dublin the ISEQ Overall Index had tumbled 1.74pc, or 104.62 points, to close at 5,899.32.

The market has now lost almost 10pc in the past three weeks, as traders focus on the growing possibility that Ireland's biggest trading partner may exit the EU.

Sterling weakened again against the dollar but strengthened marginally against the euro. While a Brexit may see sharp declines in sterling, the euro is also likely to take a big hit.

It was also the first trading day since the US Federal Reserve decided against cutting interest rates in June, amid signs of a weakening US economy.

In Dublin, Allied Irish Bank took a beating, albeit on low volume. The bank, which is more than 99pc State-owned, slumped 7.4pc to €6.30. Bank of Ireland also struggled on the session, falling 3.1pc to 22c.

Ryanair endured a difficult day. The airline gave up 2.7pc to end the day at €12.50.

PaddyPower Betfair lost 2.2pc, closing the day at €109.55.

Only four firms ended yesterday in positive territory. Hotelier Dalata was one of those, adding 0.7pc to finish at €4.40.

The problems continued across Europe yesterday. The Stoxx Europe 600 Index fell 0.7pc, while in London the FTSE 100 slipped 0.3pc. In Paris the CAC 40 fell 0.5pc, while in Franfurt the Dax Index gave up 0.6pc.

"There aren't enough buyers out there to prevent the downside and the negative momentum continues," said Guillermo Hernandez Sampere, head of trading at MPPM in Eppstein, Germany.

Irish Independent

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