Stocks slip after early gains

Stocks drifted and lost early gains on the Irish Stock Exchange today as US markets slipped following treasury secretary Timothy Geithner’s warning that solving the financial crisis will take time.

The Iseq index of Irish shares was off almost 1 per cent at 2,454.72 ahead of the official close of business, but still outperformed European markets, which shed a greater proportion of their value.

The Dow Jones Stoxx 600 Index, which tracks leading shares in 18 western European markets, sank 4.44 points, or 2.2 per cent, to 194.91 by 4:44 pm.

London's benchmark FTSE-100 index was down 94.53, or 2.2 per cent, at 4213.08 at the close.

Irish shares gained on low volumes for most of the day but slipped in the final stages of trade as New York dropped 300 points in the wake of Mr Geithner's statement.

Traders said that much of the action in Irish banks is now down to retail investors, who are taking a punt on movement in the institutions' price ahead of the Government's expected recapitalisation announcement.

AIB closed down 1.1 per cent at €1.167, Bank of Ireland was off 0.29 per cent at 69.8 cent.

Irish Life & Permanent made good gains after ratings agency, Standard & Poors took if off credit watch, saying it believed the mortgage lender and life business would get the support it needs from the Government.

It added 4.37 per cent to close at €2.15.

Elsewhere, Ryanair gave up some of the altitude it gained last week, closing 4.55 per cent down at €3.23.