Shares in the privatised telecommunications group Eircom have fallen to their lowest level since the July flotation and, at yesterday's closing price of €3.94 (£3.10) on the Dublin market, are just four cents above the flotation price of €3.90.
Yesterday's 14-cent fall in the share price has been the most dramatic since the market for the stock turned sour last month.
The fall to a point barely above the flotation price means investors are unlikely, at the moment, to even recover their investment when broker's commissions are taken into account.
Those investors who borrowed to fund their Eircom investment and who have retained their shares are now suffering a paper loss when the combination of broker's costs and the interest on their loans are taken into account.
At this stage, most analysts believe that, however disgruntled investors may feel towards their Eircom investment, they have little option but to hold on in the hope the shares will recover.
Market sources said that Eircom has suffered from negative sentiment towards the European telecommunications sector - comparable stocks like British Telecom, Orange and Colt all fell sharply yesterday - and a feeling among British analysts that the Irish economy from which Eircom derives most of its earnings is set to slow down.
That view of the Irish economy may not be shared by Irish economists, but it is a factor that has been priced into Eircom shares by overseas investors in particular.
Irish institutions - although underweight in Eircom shares - have apparently been waiting for the shares to touch bottom before returning to the market as buyers.
Whether yesterday's close of €3.94 represent a floor for the stock remains to be seen, but Eircom and its advisers will be keen to ensure the shares do not fall below their flotation price. Likewise, the Government - while it can feel happy at getting a price for Eircom that it could not have hoped for if the company was being floated now - will be concerned to ensure that the half million private investors are not put off investing in future State privartisations.
