Irish financial shares down €2.5bn
Bank of Ireland shares fell 5.5% to €9.83 valuing the bank at €9.7bn. The stock has lost 44% of its value this year. Good recoveries on Wall street in the US and in the Asian markets since Tuesday were not enough to ease fears about the banking sector’s exposure to the housing market.
A warning from Bank of Ireland that its full year earnings would not be as good as it had forecast again sparked fears that banks here are overexposed to the construction sector, which is slowing economic growth.
