Iseq falls due to uncertainty over European aid for Greece

DUBLIN REPORT: Iseq: 2,896.13 (-26.10) Settlement date: February 16thALL EYES were on Europe yesterday as the market took its lead from developments in Brussels where European leaders met to formulate a response to Greece's debt crisis.

The Iseq moved in line with its European peers, opening strongly in anticipation of a rescue deal but dropping off sharply in afternoon trading amid continued uncertainty about the nature of the deal. It closed marginally in the red, with relatively light volumes.

CRH, the main constituent on the Iseq, lost a hefty 2.4 per cent, after European construction giant Wienerburger released results slightly below market expectations. Generally, there was a sell- off in construction-related stocks yesterday on the Iseq, with insulation group Kingspan shedding 1 per cent to €5.60 and building materials firm Grafton losing 2.75 per cent to close at €2.48, a drop of 7 cents.

Greencore’s announcement yesterday that it is to sell its malt business provided one of the few sources of news flow yesterday. While the share price rose in response, the sale was expected and it fell off towards the end of the day to close slightly lower at just under €1.33.

Despite finishing slightly lower yesterday, the two main financials had a relatively good day, outperforming other European banking stocks in morning trade. Nonetheless, AIB shed over 1.5 per cent on the day to end at €1.14. Bank of Ireland lost just over a half a percent but on very light volumes.

Ryanair was one of the most traded stocks yesterday, on both the Dublin and London markets. It finished marginally lower at just under €3.50.

Other traditional defensive stocks performed well yesterday, according to analysts. Food group Kerry was 2 per cent ahead on the day, finishing at €21.26, while Paddy Power added 2 per cent, up 47 cents, to close at €23.45.