Any residual feelgood factor from last week’s euro zone crisis deal evaporated today as markets were plunged once more into turmoil by Greece’s shock decision to hold a referendum on its second bail-out.
The Iseq index held up slightly better than its European peers, but still tumbled almost 4 per cent. Brokers reported a broad-based sell-off across markets, but building material, mining and banking stocks were worst affected.
Bank of Ireland came under heavy selling pressure after Danske bank reported a serious deterioration in the loan book of its Irish arm National Irish Bank. Brokers noted that the results have a negative read-through for Bank of Ireland, which saw its share price decline almost 10 per cent. However the bank is trading at such low levels that this equated to a fall of just one cent, bringing it to 9.4 cent.
Cement stock CRH suffered on the day after US peer Martin Marietta lowered its volume guidance for the full year. CRH closed almost 8 per cent, or €1.02, lower at just under €12.07. According to one trader, the weak macro picture was the main factor behind this fall.
Pretty much every Irish stock finished in the red, and Smurfit Kappa was no exception. The paper and packaging group saw its share price plunge almost 8 per cent, or 38 cent, to €4.62.
Across Europe, France's CAC 40 Index dropped 5.4 per cent, Germany's DAX Index lost 5 per cent and Italy's FTSE MIB Index plunged 6.8 per cent.
Additional reporting - Bloomberg
