Any hopes that Wednesday's rebound was a forerunner of a sustained recovery in the stock market were quickly dashed yesterday, with share prices once again falling sharply in response to heavy sell-offs on European markets and Wall Street's latest slump.
Even before the combination of the Clinton crisis and fears over the impact of Latin American debt on US banks sent Wall Street spiralling downwards, European markets took a tumble with financial shares leading the way.
Revelations that Societe Generale and Credit Suisse had hefty loan losses on their Russian lending were the main factors hitting the financials, and Irish financials - while having no real exposure to Russia - were not immune to the selling pressure.
Most of the selling was focused on the large liquid stocks and AIB dealt down 61 1/2p to 865 1/2p, its lowest level of the day. Bank of Ireland was 45p lower on £10.67, Anglo Irish lost 2p to 163p and Irish Permanent was down 10p on 760p, while Irish Life saw some severe selling pressure and lost 32 1/2p to 467 1/2p.
Against that background, it's hardly the most auspicious time for First Active to be going to institutional investors looking for funds and certainly the view in the market is that, unless the market stages a strong recovery over the next two or three weeks, First Active shares will be floated very much at the lower end of the 265p to 380p range indicated in the listing particulars.
Given that First Active members are getting their shares for free, the actual flotation price doesn't make much difference except to those who plan to sell their free shares straight away. The lower the flotation price, the longer members who get free shares are likely to hold on and not succumb to the temptation of instant profit.
Leading industrials also took a beating with CRH falling as low as 861p to close down 30p on 870p. Smurfit closed down 9p for its lowest level of the day on 105p, just 10p off its recent low and a long way below Goodbody's 150p sum-of-the-parts valuation on the company.
On Wall Street, JS Corp was trading down $7/8 on $10, close to its lowest level since its flotation five years ago, and $15 below the price it is committed to paying Morgan Stanley for 20 million shares - an integral part of the JS Corp/Stone merger arrangement.
Elsewhere, a profits warning from Royal Doulton did little to help Waterford Wedgwood, which closed down 3p on 62p, while others to weaken included Avonmore Waterford, down 6p on 217p, DCC, down 20p on 390p, IWP, down 22 1/2p on 257 1/2p and Green, down 10p on 380p. The few to buck the trend Included Kerry, Ryanair and Greencore.
Irish technology stocks fell as the technology-laden Nasdaq market dived. CBT fared worst and was trading nearly $5 down as the Irish market closed on $53 5/8, while Elan - an 11 per cent constituent of the ISEQ - was trading over $2 lower on $59 5/8.
Others to fall included Esat and Saville Systems.
