Investor caution leads market down

THE ISEQ index finished 93.32 points weaker yesterday at 2,251.15 as investors remained very cautious of the banking sector after the government’s €7bn bank recapitalisation was overshadowed by Anglo Irish Bank/Irish Life and Permanent’s deposit transfer scandal and Bank of Ireland’s statement on its bad loans.

The banks endured a miserable start to the week. AIB dropped sharply by 13c to 55c, Bank of Ireland fell 10c to 38c, Irish Life & Permanent declined 13c to €1.45, while insurance group FBD Holdings dipped 5c to €8.45.

In the construction sector, CRH plunged €1.19 to €17.56 despite the news that the US House and Senate had approved the stimulus package, which is now set to be signed by president Obama.