Financials perform poorly

THE ISEQ index fell for the first time in five days yesterday, closing down 74.99 points to 4342.02.

The financial sector performed poorly after a leading Dublin stockbroker reduced its rating for Ireland's leading banks to ‘hold’ from ‘buy’, saying Irish banks are unlikely to outperform in a European context given current valuations.

Bank of Ireland and Allied Irish Bank reacted accordingly. Bank of Ireland fell 34c to €11.40 and Allied Irish Bank slipped 30c to €14.50. Other financials which closed in negative territory included Irish Life & Permanent down 30c to €12.60, First Active 18c lower to €5.07 and Anglo Irish Bank 14c weaker to €6.55. IFG remained unchanged at 57c. The financial Index closed down 224 points to 9046.98 points.