Iseq's slide tracks turmoil in markets across Europe

Iseq:2,608.19 (–116.47) Settlement date:November 4th

ANY RESIDUAL feel-good factor from last week’s euro zone crisis deal evaporated yesterday, as markets were plunged once more into turmoil by Greece’s shock decision to hold a referendum on its second aid package.

The Iseq index held up slightly better than its European peers, but was still down more than 4 per cent on the day.

Brokers reported a broad-based sell-off across markets, but building material, mining and banking stocks were worst affected.

Bank of Ireland came under heavy selling pressure after Danske Bank reported a serious deterioration in the loan book of its Irish arm National Irish Bank. Brokers noted that the results have a negative read-through for Bank of Ireland, which saw its share price decline almost 10 per cent. However, it is trading at such low levels that this equated to a fall of one cent, bringing it to 9.4 cent.

Cement stock CRH suffered on the day after US peer Martin Marietta lowered its volume guidance for the full year.

CRH closed almost 8 per cent, or €1.02 lower at just under €12.07. According to one trader, the weak macro picture was the main factor behind this fall.

Food ingredients group Kerry moved lower on fairly lacklustre trading levels ahead of its interim management statement due out today. It shed about 3 per cent, or 82 cent, to close at €26.16. This was broadly in line with the performance of most of its peers in the food industry.

Industrial holdings group DCC sank 24.5 cent to €19.80 despite announcing the completion of the acquisition of certain oil distribution assets from Total in the UK.

Pretty much every Irish stock finished in the red, and Smurfit Kappa was no exception. The paper and packaging group saw its share price plunge almost 8 per cent, or 38 cent, to €4.62.