2 billion wiped of value of Irish shares

By Conor Keane IRISH shares plummeted yesterday with 2 billion euro wiped off their value.

Another day of global volatility on the markets saw share values plunge, with the Irish stock market now down €30 billion since January.

The giant building supplies company CRH took the single biggest hit among Irish shares yesterday with €1 billion alone being knocked off the value of shares held in the company.

CRH surprised the market disclosing it was being sued in the United States for asbestos-related injuries. The shareholding of the companies 15 directors fell by €4.76m and one director Don Godson saw the value of his personal holding of €6.7m fall by 1m.

The shares fell 15.04% in Dublin despite assurances from CRH that the US legal claims will have no material effect on the financial position of the company which is expected to make pre-tax profits of close to 841m this year.

The value of shares traded on the Irish Stock Exchange hit a 12-month high of €80 billion on January 17. By close of trading in Dublin last night weeks of sustained losses had eroded almost €30 billion off the value of the market bringing its worth to just €51 billion.

Friends First chief economist Jim Power said the CRH asbestos claims were the main reason for the massive drop in Irish shares but he said market trends around the world do not show any signs of improving soon. “Sentiment is awful, nothing is working in the markets favour and the news from US is gloomy as the latest figures from there indicate the US may be heading into recession,” he said. In London the FTSE 100 posted one of its biggest one-day falls yesterdayok, crashing 4.8% knocking £44 billion off its value after yet more gloomy US company projections and data showing much weaker than expected US manufacturing activity.