IL&P shares plunge on ISEQ

Shares in Irish Life & Permanent dropped sharply on the ISEQ index today after the company increased its bad debt forecasts.

The share price fell by 60c or 13.49% to €3.82.

IL&P in an interim management statement issued this morning said that bad debt provisions in the second half of the year would be broadly in line with the first half provisions of €189m, compared with €82m for 2008 as a whole.

The company said the largest element of the increase came from commercial property where values continue to decline.

Other financial stocks were also in the red, with AIB down 5c to .€1.75 amid a row over the salary level of its new managing director exceeding the Government's proposed €500,000 cap.

Bank of Ireland was down 7c to €1.65, while insurer FBD lost 21c to €5.67.

Elsewhere on the fallers' board, CRH shed 33c to €17.16; Smurfit Kappa lost 32c to €5.70; Merrion Pharmaceutical was down 18c to €3.50; Kerry Group slipped 10c to €20.70; Grafton Group was also down 10c, to €3.16; Paddy Power lost 7c to €24.68 and Ryanair shed 5c, to €2.93.

In a day with little upward movement, Tullow Oil added 27c to €14.35 and Aryzta gained 4c to €26.34.