Continued weakness in technology stocks and a batch of banking downgrades left the Irish market in poor shape. Financial stocks fell more than 2 per cent while leading industrials were also weaker but not to the same extent.
Despite suggestions in some quarters that they are potential takeover targets following the vetoed Lloyds TSB/Abbey National deal, AIB and Bank of Ireland were sharply lower. AIB was not helped by being included in a batch of European bank downgrades by Commerzbank analysts.
AIB is in good company in the Commerzbank downgrade, which also includes such blue-chips as Deutsche Bank, Societe Generale, Lloyds TSB, ABN-AMRO, BNP Paribas, BSCH and HypoVereinsbank. AIB fell 30 cents to #12.80 while Bank of Ireland lost 32 cents to #11.25.
Volumes in industrial stocks were modest. Fyffes was unchanged on #1.26 with 1.1 million shares changing hands. BIAM has disclosed that it has sold eight million shares in recent weeks and its stake is now down to 9 per cent. Greencore was also unchanged on #2.45 in volume of 1.4 million shares - Merrill Lynch has been a recent seller of about 500,000 shares and its stake is now down to 6 per cent from 6.3 per cent.
CRH drifted 16 cents lower to #20.46 in small volumes, IFG was down 12 cents on #3.08 as Fidelity disclosed that it has sold about 170,000 shares to take its stake below 10 per cent while Smurfit lost four cents to #2.27 with 1.1 million shares trading in Dublin.
On overseas markets, speculative interest saw Baltimore gain 1p to 27p sterling - newly reappointed director Bijan Khezri has disclosed that he bought 600,000 shares on Tuesday at an average price of 20.88p.
