ISEQ avoids the worst of European falls as concerns over credit crisis continue

DUBLIN’s ISEQ index of shares dipped by 1.5% — or 42.77 points — to just over 2,810 points yesterday, but still managed to escape the worst of the stock market falls seen internationally after another day of growing concerns emanating from the credit crunch.

In comparison, London’s FTSE lost 3.6% — even though it featured a 6% daily share price rise for mobile phone network provider, Vodafone on the back of an upbeat interim management statement.

The CAC 40 index in Paris fell by 4.8%, while the other premier European market, the DAX in Frankfurt suffered a 5.3% reverse.

Early trading in the US saw slight point-based falls in both the Dow Jones and the technology-based Nasdaq. The Nikkei index in Japan had previously shown a 3% drop.

Share movements in Dublin yesterday were more varied. All of the banking stocks fell — but by varying degrees. Both Bank of Ireland and Anglo Irish Bank fell by 3c, to €1.51 and €2.01 respectively. However, AIB — on the back of speculation that it may try to raise more cash by selling its stake in the US bank M&T — fell by 30c, or 8.33%, to close at €3.30.

After a relatively steady week, Irish Life & Permanent (IL&P) lost 53c, yesterday, representing a daily percentage loss of more than 20% to €2.07.

Elsewhere, Kerry Group was stable — after a stream of steady losses last week — at €16.55; Independent News & Media (INM) was down by 8c at 67c and Ryanair fell by 15c — or 5% — to €2.85.

After announcing that losses would extend into next year, Aer Lingus surprisingly snuck upwards — albeit by 1c — to €1.20. DCC’s rise on Monday, in the light of positive first-half financial results, was followed by a 1.80% — 23c — decline to €12.55.

News that two investment companies increased stakes in Belfast-based media group, UTV did nothing for its shares — which stayed level at €1.14. However, for one of the investors — TVC Holdings — it boosted its share price by nearly 8% to 56c.

Other climbers in Dublin trading yesterday were drinks group C&C — whose new management and investment news boosted shares by 3c to €1.40 — and cement giant, CRH which rose by an impressive 58c — or 3.49% — to close at €17.19.

In the US, stocks dropped for a second day as a deteriorating outlook for American industry and oil’s drop below $60 a barrel signalled the economic slump may deepen.

GM tumbled to the lowest price since 1943 as the carmaker crept closer to bankruptcy, while Tyco, the world’s largest maker of security systems, sank 14% on a profit forecast that trailed estimates.