Dublin report:Investors were put back on the defensive yesterday after the rebound seen in global markets on Monday subsided and sentiment soured again.
Things started off quite well in the Irish market with earlier-than-expected interim results from building materials group Grafton boosting sentiment. However, a negative earnings outlook from US retail giant Wal-Mart knocked the mood and, by the end of the day, helped push the Iseq index of Irish shares down 1 per cent.
Half of the €2 billion the index managed to claw back on Monday was again lost as the Iseq closed at 8,426.79 points.
As usual, the banks played a major part in the declines, with AIB falling 2.5 per cent, or 48 cent, to €18.72, while Bank of Ireland was down 1.8 per cent, or 25 cent, at €13.60.
Meanwhile, Anglo was the busiest of the financials with five million shares changing hands, though the stock held up better than most, slipping just five cent, to end the day at €14.
Grafton bucked the trend, rising more than 8 per cent after reporting an 18 per cent increase in first-half pretax profits.
The shares, however, fell back as the day progressed to close up 5.2 per cent, or 49 cent higher, at €9.99.
Grafton said yesterday that the early release of its results would give it the flexibility to buy back some of its own shares, a statement that one dealer said had pushed the stock higher. As the day progressed and no buyback materialised though, the shares fell back.
Elsewhere, Independent News & Media was a loser, dropping 2.1 per cent, or seven cent, to close at €3.22 despite revealing that APN, the Australian media group in which it has a 38.3 per cent stake, had recorded a 5 per cent increase in first-half profit.
