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.

Pharmaceutical shares had a mixed day. Galen added 29c to €6.80. Elan Pharmaceuticals and United Drug remained unchanged at €2.15 and €12.10 respectively.

Ryanair closed 20c lower to €7.35 after its significant post result share performance yesterday. Other noteworthy movers on a disappointing day for Irish shares included Qualceram losing 20c to 95c, Kingspan falling 10c to €1.95 and FBD Holdings closing 9c lower to €5.35. On a positive note, in the food sector IAWS added 30c to €7.60 and Kerry closed 5c higher to €13.20.