US rate cut fails to boost market

THE Irish market followed the FTSE 100 into sharp decline in early trading, despite an overnight 0.75% cut in US interest rates.

Having been down over 100 points at one stage, the ISEQ index rallied in the afternoon to close 58.43 points down at 5,839.68.

The financial stocks had a mixed day with AIB, Bank of Ireland & Irish Life and Permanent up 10c, 9.5c and 33.8c to 12.60, 8.94 and 10.90. Anglo-Irish stabilised, closing the session as it began at 6.90.

The construction stocks were down en masse. A drop in the US Architectural Billings Index, the indicator of the health of construction activity in the US commercial sector, dragged CRH 85c lower to 23.90. Kingspan lost 18.2c to 8.04 and Grafton Group lost 5c to 5.35.