Iseq falls while investors see food stocks as safe haven

Iseq: 2,444.52 (–48.39) Settlement date: September 26thFOOD COMPANIES came out tops in yesterday's trading, as investors sought defensive, or safe haven stocks in an increasingly worried world.

Greece may default, and the euro may part or wholly implode, but people will still have to eat.

Fyffes finished the day up 1.5 per cent, closing at €0.38.

CC climbed 1.3 per cent, at €3.04, and Kerry rose 1.16 per cent, at €25.83.

These were respectable performances on a day when the Iseq fell by 1.94 per cent, itself a decent performance, as European mar-kets were weak and the New York exchange had had a poor finish the previous evening.

It was a day of waiting, traders said, with interested parties awaiting the latest developments in Greece in the euro crisis, and wondering what the Federal Reserve might say when it speaks on what it intends to do next to stimulate activity in the United States.

Financial institutions are no longer a defensive stock.

Bank of Ireland fell 1.4 per cent, to €0.07 while AIB fell 4.44 per cent, to €0.04.

The value of CRH shares fell by 4.86 per cent, to €11.16.

Traders pointed out that the stock had outperformed its peers in the sector in recent days and said this was most likely behind the price fall.

Ryanair dipped 2.03 per cent, to close at €2.99.

Tony Tyler, chief executive officer of the Inter-national Air Transport Association, said world economic growth prospects were the biggest risk for the aviation industry in 2012.

Grafton fell 2.55 per cent, to €2.68, on respectable volumes. The stock had been doing well and the fall in price was probably an instance of investors deciding on a sell-off, traders said.

Independent News & Media lost 3.57 per cent, ending at €0.27.