Slow US trading leads to late shares sell-off

THE ISEQ eased back from record all-time highs yesterday as it finished the day down 5.40 points — or 0.07% — to 8,197.47 as slow trading in the US led to some late selling-off of shares on the Irish market and profit-taking among investors.

However, shares have now rebounded strongly from the turbulent days of the summer when the exchange dipped below the 7,000 mark as it was weighed down by jitters in the global equity markets.

At the end of August, shares broke through the 8,000 level for the first time since May and have continued their upward trend over the past number of weeks.

The ISEQ has benefited from good news on a number of micro and macro levels in recent months. Globally, equities are mainly being helped by two positive factors, according to Rossa White, economist at Davy Stockbrokers.

Oil has fallen from the all-time highs of nearly $80 a barrel in early August as the conflict involving Israel and Lebanon, escalating violence in Iraq, militia activity in Nigeria and BP’s announcement that it would have to shut down one of its largest oilfields in the United States following an oil leak threatened global supplies and unnerved the market.

Financial stocks have been buoyant in the past few days and Ryanair’s stock has picked up with the drop in oil prices, which have all helped push the Iseq into record territory.