Market dips on fears over euro zone debt crisis

ISEQ: 2,926 (- 7.55) Settlement Date: May 31st:THE DUBLIN market finished marginally lower yesterday evening, as global markets retreated amid renewed concerns about the euro zone debt crisis.

While Eurogroup president Jean-Claude Juncker’s comments that the IMF may not release its portion of an aid payment to Greece next month spooked markets, traders in Dublin said the sell-off had begun before then.

Irish Continental Group was the biggest mover yesterday, after a major shareholder, Doyle Shipping Group, sold its stake in the company. Some three million shares were sold at €15.75, with the stock closing at €16.40.

Following its agm yesterday, pharmaceutical company Elan advanced 2 per cent, continuing the upwards momentum enjoyed by the stock following Wednesday’s announcement that it had acquired 24 per cent of a US drug discovery company. The stock closed at €6.31.

Index-heavyweight CRH shed 1 per cent, closing at €14.85 following a broker downgrade by Citi.

Elsewhere, airline stocks continued to stabilise as the threat from the latest Icelandic ash-cloud receded. However, the Iseq’s two airline stocks failed to replicate the gains enjoyed on Wednesday. Aer Lingus – which is 75 years old today – finished down 1.2 per cent at €0.81, while Ryanair shed 0.3 per cent to close at €3.45, with brokers noting that Ryanair’s cautious soundings about its 2011 performance at the publication of its annual results earlier this week dampened investor interest.

DCC was actively traded following full-year results from UK waste-management firm Shanks, a company with which DCC’s environmental business has significant overlap. DCC finished 2 per cent lower at €20.60.

On the bond markets, yields on 10-year Irish government bonds hit more than 11 per cent.