ISEQ plummets in early trading

The ISEQ index took an early hammering before 1pm today, losing an incredible 260.89 points to decline to 7,418.13 in a miserable morning of trading where no company made any gains.

The financials all made significant losses. Irish Life & Permanent fared the worst, losing 75c to €18.70. Bank of Ireland shed 53c to €13.62, despite their contention that today’s outsourcing deal would save the company €30m.

Allied Irish Banks took a 64c hit to drop to €18.21, whilst shares in Anglo Irish Banks did little better, sliding 57c to €11.63.

Elsewhere, the usually buoyant construction sector was the victim of heavy selling. CRH took the biggest hit in the sector, plummeting €1.11 to €24.79. Kingspan Group endured a loss of 27c, sliding to €13.53, whilst Grafton Group shed 23c to €10.30. McInerney Holdings escaped relatively unscathed, down 5c to €12.10.

Shares in Elan fell in the US, and Irish investors took a similar line following the disappointing news that the company had secured only restricted approval by the US Food and Drug Administration (FDA) for the reintroduction of its multiple sclerosis drug Tysabri. The pharmaceutical giant was the biggest faller of the day, losing more than 10% of its market value, tumbling €1.56 to €13.20. Elsewhere in the sector, United Drug fell 14c to €3.40.

There was bad news also in the food and drink sector also, with Kerry Group being the biggest victim, dropping 29c to €17. Greencore and IAWS both shed 13c to fall to €3.80 and €14 respectively. Shares in C&C Group were down 22c to €6.61.

Despite announcing record profits of €302m, low cost airline Ryanair shed 8c to €6.80 this morning. Also in the travel sector, Irish Continental endured an 11c slide to €10.79.