Iseq falls over 4% on fragile investor sentiment

Iseq: 2,454.64 (–111.58) Settlement date: August 23rd

THE ISEQ index tumbled back below the 2,500 mark yesterday as it succumbed to the negative sentiment that resurfaced across global markets.

An upbeat performance by European equities on Wednesday proved a temporary reprieve, as fresh warnings about global growth rattled investor confidence once again yesterday.

The Iseq mirrored the falls of larger equity indexes, giving up more than 4 per cent to close at 2,454.64.

One Dublin trader predicted that the Iseq’s slump is far from over and said the expectation was that it would revisit its recent lows. Earlier this month, the index set a 12-month low when it touched 2,333.35.

Cyclical stocks were the biggest fallers yesterday, with building materials group CRH plunging almost 8 per cent, or 95 cents, to €11.45. As the largest stock in the Iseq, this poor performance by CRH dragged the index down.

Paper and packaging group Smurfit Kappa also found itself in the firing line, and closed about 6.5 per cent lower, or 34 cents, at €4.90.

Elsewhere, Independent News & Media’s (IN&M) share price tumbled almost 19 per cent, although it is trading at such low levels that this equates to a fall of just 5.5 cents, bringing it to 24 cents. This slide came after NCB downgraded its earnings forecasts for the media group. Poor results from IN&M’s Australian associate APN added to the downwards pressure.

Defensive stocks outperformed in relative terms, but gave up ground nonetheless. DCC shed a little more than 2 per cent, or 42 cents, to close at €17.78, while Kerry Group fell 1.3 per cent, or 36.5 cents, to just below €26.99.

Financial services group IFG was one of the few stocks to chalk up a positive performance, adding two cents to €1.67.