Iseq dips for third straight session, led by Brexit unease

Irish shares dipped for a third day in a row on Wednesday, with Brexit-sensitive names like Kingspan, Ryanair and C&C among the worst performers.

The Iseq fell by 0.2 per cent to 5,512.7 as of 8.55am. However, the FTSE 100 added 0.4 per cent, adding to yesterday’s gains, as London’s largest export-oriented companies are seen gaining from a slump on sterling against the dollar and euro.

The Stoxx 600, a benchmark for the broader European market, slipped by 0.1 per cent.

After rallying last week on bets central banks will work to limit the fallout from the so-called Brexit, global equities are retreating again as the knock-on effects of the vote become evident. Three asset managers froze withdrawals from UK property funds on Tuesday following a flurry of redemptions and the Bank of England relaxed capital requirements for lenders.

“For those of us unfortunate enough to have lived and worked through Ireland’s property crash from 2007 onwards, the latest news flow from the UK is bringing back memories. They are not good ones,” said Dermot O’Leary, an economist with Goodbody Stockbrokers in Dublin.

German factory orders unexpectedly failed to rise in May, data showed Wednesday, and the chance of a 2016 U.S. interest-rate hike has been all but killed off in the futures market.

"Equities still exhibit a lot of risks," said Mark Lister, head of private wealth research at Craigs Investment Partners in Wellington. "The lack of confidence and growth will weigh on sentiment. For anyone that's reaped the benefits of the equity bull market it's definitely time to consider taking some profits, if you haven't already, and move to a more defensive stance."

(Additional reporting: Bloomberg.)