Financial stocks continue their slide

Market Report:Irish stocks closed in negative territory again yesterday as the Dublin market finished down 0.6 per cent.

Financial stocks continued to take a hammering after Wednesday's disappointing outlook from Bank of Ireland. But while Bank of Ireland and AIB led the charge on Wednesday, yesterday it was the turn of Anglo Irish Bank and Irish Life & Permanent to take the hardest hits. Anglo finished down 5.75 per cent at €9.51, falling 58 cent, while there was heavier than usual volume in Irish Life & Permanent, which suffers similar exposure to the housing market as Bank of Ireland. It tumbled by more than 3 per cent to €13.95.

Bank of Ireland actually recovered 1 per cent yesterday, with nine million shares trading hands, while AIB climbed by around 0.75 per cent. There was a relief rally in C&C, which yesterday announced details of its restructuring plan following a sharp decline in cider volumes in the UK. The market's response was good and the stock managed to climb 3 per cent to €4.42.

Food stock IAWS fell 3.58 per cent yesterday, which dealers attributed to the capitulation of contracts-for-difference (CFD) investments, in which the stock is commonly held. It closed at a price of €15.95. Meanwhile, food company Greencore rose 3 per cent, closing at a price of €4.78, up 14 cent.

CRH, with its exposure to both housing and the US market, continued to be unloved, and fell 2 per cent to €24.05. Building group Grafton, which is conducting a share buyback, was also the victim of CFD capitulations, and it closed down 5 cent at the ominous price of €6.66.