Iseq follows lead in Europe as market declines by 2%

DUBLIN REPORT: Iseq: 2890.11 (-61.19)) Settlement date: February 8thWEAK MARKETS across Europe and the US yesterday were reflected in a 2 per cent decline in the value of the Iseq index of Irish shares. "Any stock that was close to being flat on the day was doing well," one dealer commented, given the weakness in equities across Europe.

Building materials group CRH, the largest component stock on the Iseq, performed better than other stocks in its sector, according to dealers. However it still slipped 3.33 per cent during the day, closing at €16.82. Ryanair, another Iseq heavy hitter, also fell in trading, finishing the session at €3.37, down 2.6 per cent.

Financial stocks had diverging fortunes, with Irish Life Permanent gaining 3.1 per cent to finish at €3.10, but AIB and Bank of Ireland both continuing to decline. AIB traded as low as €1.05 on the day, before closing at €1.09, down 4.8 per cent. A relatively high volume of Bank of Ireland shares were traded, with the stock closing at €1.19, down almost 2.5 per cent.

There was little local news driving the direction of the share movements. Global shares slid to three-month lows as government bonds and the dollar rose following the release of mixed data on US jobs and concerns about sovereign debt in Greece, Portugal and Spain.

Pharmaceutical group Elan fell 2.7 per cent to €5.22 ahead of its fourth quarter results next week. The US Food and Drug Administration also placed a notice on its website yesterday in relation to a new label that has been placed on Elan’s Tysabri drug since November 2009. The label gives updated information on the risks and benefits of taking the MS drug.

Among the other losers were insulation group Kingspan, which fell 4 per cent on overvaluation concerns, and paper and packaging group Smurfit Kappa, which was weak in trading ahead of its fourth quarter results, due to be published next Wednesday.