Iseq slips back on weaker Smurfit Kappa and DCC

Iseq: 2,503.19 (–8.62) Settlement date: October 5thIT WAS a quiet day on the Irish stock market as traders reported low volumes as the third quarter of the year drew to a close.

Investors avoided the market as they were busy “measuring the pain of the quarter”, said a trader.

“It wasn’t a day to put on new trades or to change your investment strategy massively,” he said.

European stocks fell after inflation rose unexpectedly in the euro zone, diminishing the chances of a further cut in interest rates.

Bank of Ireland bucked the trend, outperforming the Euro-pean banks.

The share price of Ireland’s largest bank rose 1.3 per cent to just under eight cent.

Share prices across Europe fell as Chinese manufacturing fell for a third month and German retail sales dropped the most in four years, adding to concerns that the global economy was slowing.

Ryanair finished 1.2 per cent, or four cent higher, at €3.32 a share.

Among the declining stocks was Smurfit Kappa which fell 6.2 per cent to close at €4.50. Industrial holdings group DCC slid 2.2 per cent to €18.78.

Irish Government borrowing costs rose as the yield on the sovereign 10-year bond climbed to 7.6 per cent but the performance of the State debt over the past three months has been encouraging.

The increase in the borrowing cost may be attributable to the European Central Bank’s reduced level of bond purchases this week.

The fall in the yield over recent months has arisen as a result of improvement in the sentiment towards the Irish economy.

Irish debt recorded the best quarterly return among 26 markets tracked by European Federation of Financial Analysts Societies indexes, Bloomberg reported.

The State’s 10-year borrowing cost which peaked at 14.2 per cent in July, fell below 8 per cent earlier this week.