Shares slide as profit-takers pounce

Market Report:The markets sat back and took a breather yesterday after the strong activity of the last few days.

Volumes were quieter than in recent sessions, but traders maintained that they were still above average.

The Iseq started strongly in the morning, showing an early rally. However, as profit-taking crept back into the market, shares too began to slide, leading the Iseq to finish almost 53 points down at 6,760.71, just under 1 per cent down on yesterday's trading.

The situation was helped little by rumours of a hedge fund in trouble in France, which also caused the market to shed value.

It was a mixed day for the financials, with AIB gaining 23 cent to close at €15.98 and Bank of Ireland gaining 16 cent to €10.14.

However, Anglo Irish slipped once more, falling 18 cent to finish at €9.82. Irish Life & Permanent also lost, falling 25 cent to close at €10.95.

Despite CPL Resources reporting earnings in line with expectations, and a relatively positive outlook for the coming months, shares still lost 5.195 per cent, or 20 cent, to close at €3.65.

C&C gave up some gains on the news that the Carlsberg and Heineken consortium is to buy UK drinks maker Scottish & Newcastle for £7.6 billion, which traders said could increase competition for Magners. Shares fell more than 4.24 per cent, or just over 19 cent, to €4.312.

Ryanair also contributed to the market's fall in the afternoon, as concerns regarding the company's future profits circulated. It lost 21 cent to €3.84 by the close of trade.

Meanwhile, rumours of a possible takeover of bookies William Hill were dispelled, causing Paddy Power to fall 15 cent to €19.30.