Iseq: 2,710.36 (–46.48) Settlement date: August 5th:IRISH STOCKS extended their losses yesterday as fears that the US economic recovery could remain subdued weighed on equity markets.
Investors failed to take much comfort from the fact that the US looked set to avert a debt default, and markets came under pressure globally after data showed an unexpected drop in US consumer spending in June. The Iseq sold off across the board, with the gauge closing about 1.7 per cent lower.
Index bellwether CRH also fell 1.7 per cent after results from its peer Martin Marietta highlighted continuing headwinds in the US market, to which the Dublin-headquartered cement giant is heavily exposed. The stock tumbled 21.5 cent to just below €12.66.
Smurfit Kappa plunged again finishing almost 7 per cent lower, or 45.5 cent, at €6.39. The paper and packaging group has had a “desperate run” recently, one trader said, and has shed about 10 per cent in the last three sessions. Smurfit’s stock tends to be very volatile, moving up aggressively in positive market conditions, but falling sharply when markets turn, he explained.
DIY retailing group Grafton was one of the few names to finish in positive territory. The stock advanced to finish just under €2.83, despite an interim management statement from Carpetright that show that the outlook for the UK market remains challenging.
In the financial sector, AIB’s new shares began trading. Though the bank’s share price retreated slightly, it surprised brokers by remaining above the 10 cent level, closing at 10.5 cent.
One broker noted that because of a “complete anomaly” in the share price due to lack of activity in the stock, AIB’s market capitalisation stood at almost €53.9 billion, placing it among the four largest banks in Europe.
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