Financials decline as ISEQ follows lead from Europe

MARKET REPORT: Markets were softer across Europe yesterday and Dublin was no exception, with weakness in the financials leading to a 0.6 per cent drop in the ISEQ.

The two main banks both attracted good volume, but neither was able to hold on to Wednesday's gains. AIB fell back 15 cents to 12.45 as 4.7 million shares changed hands. Dealers reported "chunky" trade, with two million units crossing in one block at 12.55. Bank of Ireland declined two cents to 10.55 on volume of 4.5 million shares.

Anglo Irish Bank had a better day, eventually closing unchanged at its new comfort level of 10.00. Irish Life & Permanent shed three cents to finish at €11.67. First Active was unchanged at 6.11, after seeing most business at that level.

CRH fell back in line with the market, closing 34 cents lower at 16.25 on quiet trade.

In other top-liners, Ryanair continued to advance, adding three cents to finish at 6.70 as 4.5 million shares were traded. The airline's chief executive, Mr Michael O'Leary, said yesterday that he was not expecting the European Commission to deliver its verdict on Charleroi until the middle of next month.

The biggest outperformer on the day was Iona Technologies, which finished 45 cents stronger at 3.10 on minimal volume as it played catch up with its Wednesday performance in the US.

Performances were mixed elsewhere, with busier companies including IAWS, which climbed three cents to 8.63, and fellow food stock Fyffes, which fell four cents to 1.58.

One million shares were traded in Independent News & Media as it dropped two cents to 1.74. DCC was also a loser, declining three cents to €11.24. McInerney was more solid as it rose 10 cents to 4.18 on volume of 700,000 shares.

Elan fell back 10 cents to 4.80 as the market looked to next week's annual general meeting in Dublin.