Dublin report: The Iseq index traded as much as 3 per cent lower yesterday before recovering some ground to close down 1.9 per cent, or €1.8 billion lighter, at 7,644.80.
As usual the main contributors to the move were the financials and construction-related stocks, though the negative sentiment came in most part from overseas following significant declines in the US last Friday and in Asia overnight.
Dealers said the lack of stock-specific news closer to home meant the Irish market had little choice but to follow its peers. Anglowas the worst hit of the banks, falling more than 5 per cent, before clawing back some of its losses to close down 2.6 per cent, or 32 cents, at €11.76.
Dealers reported decent selling interest in all the financials, with Bank of Irelandclosing 2.4 per cent, or 29 cents lower, at €11.78 and AIBdropping 2 per cent, or 33 cents, to end the day at €16.57. Irish Life & Permanent, meanwhile, fared slightly better, slipping just 0.7 per cent, or 11 cents, to €14.86. Elsewhere, building materials group CRHfell 2.2 per cent, or 56 cents, to close at €25.50 as almost 2 million shares changed hands.
The stock, which has been under significant pressure because of its exposure to the US, suffered again yesterday as a result of a trading statement released by Caterpillar on Friday warning that the housing slump was infecting the wider economy.
Davyalso reduced its 2008 earnings forecast for the group by 4 per cent.
Independent News & Mediahad another bad day, falling 4.7 per cent, or 13 cents, to €2.57.
Ryanairwas also a loser, falling 1.6 per cent, or 9 cents, to €5.49. The airline revealed it had continued its share buyback, spending €5.4 million on 1 million units.
