ISEQ falls 2.3% over pace of recovery fears

THE ISEQ suffered a 2.3% drop last month, upping the second quarter’s loss to 9.4%, as ongoing concern over the pace of recovery in the global economy has continued to lead to a major sell-off of equities.

“Most European markets lost ground during the month, with the E300 [the FTSEurofirst 300 index] declining by 0.8%, which is below the June average of -0.3% since 1986. Sector breadth for the E300 was positive as 17 of the 32 E300 sub-sectors gained ground in June,” according to Jim O’Neill of Davy Stockbrokers.

“The 2.3% loss experienced by the ISEQ is significantly below the June average of -0.5% since 1985. The 9.4% loss for the quarter completely wiped out the gain of 6.8% achieved in the first quarter. The ISEQ underperformed the E300 by 1.6% in June and by 1.7% in the second quarter, bringing its year-to-date outperformance to 1.9%. Breadth remained negative with 26 stocks gaining, 28 declining and two finishing flat,” he added.