Market dips in nervous trading

THE ISEQ slipped 16.57 points to close at 2,964.85. The European Central Bank raised interest rates by 25 basis points (0.25%) to 1.25% yesterday, announcing its first hike since July 2008 to counter firming inflation pressures in the 17-country euro zone.

In other news, Portugal’s caretaker government said it has decided to seek financing from the European Union after resisting a bailout for months previously.

In the financial sector, AIB slipped 0.4c to 29.9c. Bank of Ireland fell back 1c to 30c. Irish Life & Permanent tacked on 1.6c to 13.6c, while insurance company FBD holdings improved a further 4c to 7.49.