Dublin report: It was another day of turmoil in the Irish market yesterday as the Iseq index continued its downward spiral, closing 1.2 per cent lower.
The decline, which was not replicated elsewhere in Europe or in the US, comes after €8.6 billion was wiped off the index's value last week. It closed yesterday at 8,255.83, a level not seen since last October.
As far as individual stocks were concerned, however, it was not all bad news. While most of the financials and construction-related companies continued their declines, AIB and Grafton were exceptions to the rule.
AIB, which is due to release its interim results tomorrow, added five cent to close at €18.25, while Grafton jumped as much as 7.8 per cent amid speculation that French building materials giant Saint-Gobain is interested in making a bid for the Irish firm.
A spokesman for Grafton declined to comment on market speculation, however, and the shares fell back a little as the day progressed, closing up 5.9 per cent, or 54 cent, at €9.78.
Independent News & Media was also a gainer, but dealers said this was not surprising given its particularly negative performance over the past week. The stock rose 2.3 per cent, or seven cent, yesterday to close at €3.18.
Elsewhere, the story was not so rosy. Anglo Irish Bank fell as much as 6 per cent before recovering some ground to end down 2.4 per cent, or 33 cent, at €13.25, while Bank of Ireland was down 2.2 per cent, or 30 cent, at €13.35.
Dealers said Anglo had so far outperformed its peers and was now playing catch up.
Elan also took a turn for the worse, closing down 11 per cent, or €1.51, at €12.30. The US Food and Drug Administration is due to rule today on the use of Tysabri as a treatment for Crohn's disease.
Settlement day: August 2nd
