Losses hit €3bn in ISEQ freefall

THE ISEQ’s poor start to the week descended into freefall yesterday, as the index fell by 6.5% to its lowest point for two months and nearly €3 billion was wiped off the combined value of Irish shares.

Admission from Government that the transference of bad loans from the banks to the National Asset Management Agency (NAMA) could be put back to the new year, dragged Bank of Ireland’s share price down by 25%, yesterday, to €1.65, on concern that the company will not now have enough time to raise funds, through a rights issue, to allow it to reduce the Government’s 25% stake by the end of the year.

AIB’s share price fell by 25c, or 11.90% (after rallying in later trading) to €1.85 and although not directly affected by NAMA, Irish Life & Permanent (IL&P) shares fell by nearly 11% — or 57c — to close at €4.80.