Iseq off after a quiet Monday

A quiet Monday on the Iseq was marked by speculation that movements in the bond markets would overshadow equity markets. But though bond spreads did widen after the weekend of high-stakes political meetings in the euro zone, they didn't have any material impact on equities.

The Iseq closed down 0.66 per cent, a slip of almost 20 points, more or less in line with other European stock markets.

Building materials group CRH attracted both buyers and sellers on the day, closing off 0.7 per cent at €16.40. Construction analysts at NCB Stockbrokers noted that there may be potential for the company to make bolt-on deals in the UK, given reports that rivals are planning to make asset disposals.

Ryanair also finished down, as it continued to trade to the opposite direction of oil prices. Notwithstanding a healthy trading update from Thomas Cook indicating that summer holiday bookings are holding up well, Ryanair's stock sank back as crude oil prices advanced. It closed at €3.48, down 3.4 per cent, some 12 cent lower than the previous day.

Exploration group Dragon Oil, however, climbed 3.9 per cent to €5.82, as oil prices rallied after last week's losses.

Meanwhile, several of the major stocks - Kerry, DCC and United Drug - were all trading ahead of updates due out tomorrow. Kerry, which is releasing an interim management statement, finished down 6 cent at €28.84, while United Drug, which is due to publish interim results, rose 1.7 per cent to €2.34.

Industrial holdings group DCC, which is publishing its full-year results tomorrow, also made gains on relatively light volumes, closing up 1.1 per cent at €22.50, a gain of 25 cent.

One Dublin-based dealer noted that equity investors were sitting on their hands to some extent as they waited to see how Europe's fiscal crisis unfolds. The yield on Irish 10-year bonds rose to 10.64 per cent, having opened at 10.42 per cent, with the spread versus the benchmark Bund at 7.55 points.