Iseq's slump tracks fall in markets across globe

Iseq: 2,713 (–33.71) Settlement date: March 21st:GLOBAL CONCERNS dominated market activity in Dublin yesterday as the ongoing crisis in Japan continued to stifle investor appetite for risk.

While markets got off to a positive start following a 5.7 per cent bounce by the Nikkei index, European markets fell back in afternoon trading and Wall Street fell sharply after the European Union’s energy chief was reported as saying the situation at the Fukushima nuclear plant was out of control.

The Irish market tracked global trends, making gains in early morning trade, but falling sharply in mid-afternoon to lose 33 points to close at 2,713.

There was little stock-specific news to move the market. While details of the banking stress tests published by the Central Bank yesterday suggested that the cost of recapitalising Ireland’s lenders may be higher than expected, this had minimal impact on banking stocks according to analysts.

Falls in Irish Life and Permanent and Bank of Ireland were more than likely reflecting the general sell-off in bank stocks across Europe.

The losing streak of Irish Life and Permanent continued with its shares losing 9 per cent to close at €0.61.

Bank of Ireland, which was actively traded, shed 3.7 per cent to finish at €0.29, though AIB rose by 2.4 per cent to €0.21 on the ESM exchange, correcting a sell-off in recent days.

Food companies Glanbia and Aryzta were among the few stocks to make gains on the back of an upbeat set of full-year results from peer company, Greggs, the UK bakery chain.

Glanbia, which also benefited from a positive research note from Davy, climbed by 2.6 per cent to €4.08, while Aryzta, which reported positive first-half figures earlier this week rose by 1.5 per cent to €33.10.