ISEQ recovers after early panic

STOCK market panic hit the Dublin ISEQ yesterday and over €3 billion had been wiped off share prices by 11.45am yesterday morning.

At that point the market was down 3.6%, but it recovered rapidly as traders came to grips with what was happening in London.

As the panic eased and investors got a better understanding of what was happening share prices started to recover.

In Dublin as the day wore on the earlier heavy losses eased back and by late afternoon the €3bn loss had dropped dramatically to €1bn for the day. By then the ISEQ Index was off just 1.2% from the 3.6% low it hit before noon when markets were still in panic mode, said Peter Jackson of Bloxham Stockbrokers.

Stocks hardest hit included AIB which was down 1.76% or 31 cent to €17.32. Bank of Ireland was off only 2 cent to €13.33 while CRH was down 1.57% on the day reflecting its exposure to the British market.

Ryanair lost just 15 cent on the day which is 2.23% to €6.32 with other companies with exposure to the British market also down.

These included Glanbia and Kerry Group which were down 1.41% and 2.41% respectively.

The lack of panic was down to the fact that this was the third terrorist attack in four years and as such markets “unfortunately” are becoming accustomed to these events and do not react with the same level of panic anymore, he said.

Stuart Draper of Dolmen Butler Briscoe echoed that sentiment. Instead of blind panic Mr Draper said there was an “efficiency” in the way the markets dealt with yesterday’s horror news of yet another terrorist attack.

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