Market chaos sees Iseq fall hardest

The Iseq index bore the brunt of market chaos again yesterday, as a negative day's trading in Japan was repeated on the European stock markets. The Iseq fell harder than most, ending the day down 2.3 per cent, with €2.5 billion wiped off the combined value of the listed companies.

Anglo Irish Bank must be wondering what it has to do to see its share price move up. Despite an upbeat trading statement prompting "buy" recommendations all round, the bank saw its share price fall almost 2.5 per cent to €13.80, down 35 cent.

But the other banks were worse hit, with Irish Life & Permanent down more than 4 per cent at €17.37, a drop of 75 cent. AIB also lost 75 cent and closed at €18.25, while Bank of Ireland shed 38 cent and finished at €13.87.

The biggest faller of the day was Independent News & Media, which went down 5.4 per cent to €3.15, as the company continued its share buy-back programme. It purchased 804,000 of its ordinary shares, with the prices paid ranging from €3.13 to €3.33.

Total Produce climbed more than 6 per cent after it released stronger than expected interim results. There were gains for Fyffes, IAWS and Kerry.

Data from the Home Bond and Premier builders' insurance schemes showed housing starts in August are down 58 per cent year-on-year, a figure that didn't bode well for Grafton, which fell almost 2.5 per cent. There was profit-taking in Kingspan, which lost almost 3 per cent.

All eyes are now on Jean-Claude Trichet, president of the European Central Bank (ECB), who has kept the governing council's options open but is expected to shelve its plans to increase interest rates.

One Dublin dealer warned yesterday that if the ECB does increase its base rate today, it will lead to carnage on the markets.