Irish shares tumbled by more than 4 per cent today as financial stocks went into freefall on Dublin’s Iseq index.
After what could be best described as a bloodbath, the Dublin market closed down 199.27 points at 4,659.51, making by far the worst performing market in Europe.
Weakness in US banking stocks from last night’s trading hit banks in Ireland from the start but Bank of Ireland’s interim management statement ahead of its annual general meeting was the real catalyst for start of the sell-off of banking stocks.
The bank said that slowing economic growth in the its main markets together with global market dislocation continue to adversely affect economic earnings and said it could not provide a guidance figure on profits for the year.
A wave of selling in all four banks ensued and Bank of Ireland saw its price hammered, with nearly 11 per cent knocked off the value of its shares as it shed 55 cents to €4.51 by the close of business.
For Irish Life & Permanent, it was worse with the stock trading down 20 per cent at one stage. It eventually closed 13.25 per cent weaker, losing 71 cents on the day to €4.65. AIB fared little better, losing just under 10 per cent of the value of its share price to €8.10. Anglo Irish Bank was 7 per cent weaker at €5.089.
Airlines were one of the few positive features on the day as oil retreated by $5 falling through the $1.40 a barrel mark. Ryanair was the star performer of the day, with its share price surging by more than 11 per cent with the stock tacking on 28.5 cents to €2.83. Aer Lingus was 2.29 per cent strong at €1.325.
European stocks fell, sending the Dow Jones Stoxx 600 Index to the lowest in three years, as concern deepened that financial firms will need more capital and slumping commodity prices weighed on energy and metals shares.
National indexes dropped in all 18 western European markets today. The UK’s FTSE 100 closed 1.3 per cent lower. Germany’s DAX lost 1.4 per cent while France’s CAC 40 slipped 1.5 per cent.