Asian slide and ILP worries drive Iseq lower

MARKET REPORT:THE OVERNIGHT plunges on Asian markets and concerns about Irish Life Permanent's exposure to Icelandic debt set the tone for yesterday's busier than usual bank holiday trading session on the Dublin stock market, which spent most of the day down around 4.5 per cent before making a half-hearted sprint for the finishing line.

The Iseq index of Irish shares ended the day down just over 3 per cent, with almost all of the action concentrated in the financial stocks.

Irish Life Permanent (ILP)continued where it left off on Friday - plummeting on the back of an as yet unspecified exposure to Icelandic debt.

The financial stock was down as much as 40 per cent at one point and eventually closed down a staggering 29.4 per cent at €1.52, a loss of 63 cent that exacerbates its share price deterioration last Friday.

With global sentiment in the banking sector still bleak, Anglo Irish Bank did not fare much better and it slipped back 23 per cent to close down 43 cent at €1.41.

One trader cited a weekend newspaper report claiming that it had hired Morgan Stanley to advise it on possible sources of capital injections.

Bank of Ireland, meanwhile, lost almost 14 per cent to close at €1.38, down 22 cent, but AIB managed to finish flat.

Elsewhere, CRH held up well, according to traders, climbing 11 cent to €14.81.

On a day when volumes outside the financials were generally light, there was some activity in Independent News Media, which added 2 cent.

Ryanair, which has outperformed the market recently, fell at the close to finish down 16 cent, a loss of 6 per cent, despite further easing in crude oil prices.

Settlement date: October 30th