Stocks fall after hopes fade of debt crisis solution

Iseq: 2,588.29 (-16.33) Settlement date: October 20th: IT WAS a day of two halves on equity markets yesterday. Having made strong gains in morning trade, bolstered by reassurance from the G20 leaders that a deal would be made ahead of a crunch euro zone meeting next Sunday, stock markets fell around lunchtime after a German finance spokesman dampened hopes that a definitive solution to the ongoing debt crisis would be arrived at.

The Iseq closed down just over half a per cent, faring better than other main European markets which nursed steeper losses.

Aer Lingus was one of the main movers, advancing almost 12 per cent during the session following reports that middle eastern airline Ethiad had made an approach for the Government’s 25 per cent holding in the former State carrier.

FBD hit highs of €6.70 before slipping back to €6.55 by close of trade, a gain of 2.3 per cent on the previous day, after the insurance company upheld its full year guidance, and received shareholder approval to enter into a joint venture to run the company’s property and leisure investments with Farmer Business Developments.

Exploration stocks saw some activity. Petroceltic was unchanged following the announcement that two directors had bought shares in the company. Providence Resources was trading 11 per cent lower at €1.76 by close of business, however, despite being awarded licensing options over four new offshore areas by the Minister for Communicatons Pat Rabbitte yesterday.

United Drug traded higher after the company announced that Medco has bought out its 50 per cent stake in its UK homecare joint venture for an undisclosed amount. The healthcare company finished the session at €2.44, a gain of 1.6 per cent. Drinks group CC was one of the most actively traded stocks, ahead of interim results tomorrow, though it closed 1.6 per cent lower at €1.88.