Iseq slips below 2,000 mark to reach 14-year low point

The Iseq index of Irish shares dropped beneath the 2,000 mark for the first time in 14 years today following declines on the US and Asian markets overnight.

At 12.40pm, the Iseq was down almost 3.5 per cent at 1,977, a decline of 72 points to bring the index to levels not seen in June 1995.

Banking stocks remained under pressure today ahead of the MSCI reweighting at the end of this week which will see AIB and Bank of Ireland removed from the index.

AIB shares were down 11 per cent at 51 cent with just over 2 million shares traded I Dublin while Bank of Ireland was 6.6 per cent lower at 28 cent.

Irish Life and Permanent shares were 19 per cent lower at 77 cent.

Share price falls in Dublin were matched on other European markets with banking stocks under renewed pressure. The MSCI World slid 0.5 per cent to 753.52 at 12.22pm in London, falling for an 11th day, the longest stretch since 2005.

Ongoing concerns over the global economy affected and in particular stimulus plans in the US continue to weigh on CRH which slipped 3 per cent to €14.69.

Despite issuing broadly positive results Kerry Group shares were marginally lower this afternoon. The company reported a 6.3 per cent increase in like-for-like sales revenue to €4.8 billion.

Among the airlines Aer Lingus was over 13 per cent lower at 73 cent, almost half the level it was trading at the time of the Ryanair bid while Ryanair shares are down 5.4 per cent this morning at €2.93 with brokers noting it is struggling to breaking through the €3 to €3.40 level.

One Dublin broker said the news breaking this afternoon about gardai raiding the offices of nationalised Anglo Irish Bank “just adds to the negative sentiment about Ireland and Irish stocks”.