Could ELN be down because of a boost in the ECB interest rate? See article:
11/4/99 Dow Jones Int'l News Serv. 12:58:00
Dow Jones International News
Copyright (c) 1999, Dow Jones & Company, Inc.
Thursday, November 4, 1999
Irish Shares End Down On ECB Rate Hike; ISEQ Overall -0.6%
DUBLIN -(Dow Jones)- The European Central Bank's decision to raise interest
rates drove Irish share prices down Thursday, costing the market some of its
recent gains.
At the close, the 79-share ISEQ Overall index closed down 29.12 points, or
0.6%, at 4615.02. The narrower ISEQ Financials index was at 6652.34, a loss of
86.41 points, or 1.3%.
The market recovered from mid-afternoon lows that followed the 50 basis point
hike in all the ECB's key rates. At about 1400 GMT, the Overall index was down
40.74 points to 4603.40, and the Financials index was down 126.47 points to
6612.28.
Although other international markets rallied on the widely forecast news,
dealers said Irish financial blue chips bore the brunt of the interest-rate
hike, dipping sharply from Wednesday. Allied Irish Banks was down 11 cents to
EUR12.10; Bank of Ireland was down 21 cents to EUR8.11; and Irish Life &
Permanent was unchanged at EUR10.20.
One Dublin-based trader called the ECB's move "aggressive," but said in the
long run it could be positive for financial equities.
"The more (the ECB) did today, the less they have to do next year," he said.
Analysts also indicated the increase could eventually bolster financial
shares by strengthening the European bond market.
Among other blue chips, telecommunications company Eircom was unchanged at
EUR4.02, and building materials maker CRH was down 2 cents to EUR18.18.
Elan, which disappointed investors last week with news of a delay in the
launch of a migraine drug, continued its slide, falling 20 cents to EUR24.70.
-By Stacy Forster; 353-1-676-2189; sforster@ap.org
---- INDEX REFERENCES ----
NEWS SUBJECT: Dow Jones International News Service; Dow Jones News Wires;
European Corporate Report; International News Wire; World
Equities Report; European Central Bank; International Credit
Market News; Closing Market Commentary; Market News; Main
Stock Market Commentary; Stock Market Commentary; Stock
Market News (DJI DJWI ECR EWR WER ECB ICM MKC MKT MSM SMC
STK)
MARKET SECTOR: Newswire End Code; Clip Routing Code (NND TPX)
PRODUCT: European News/Features (DEE)
REGION: Ireland; Europe; Western Europe (EI EU WEU)
Word Count: 259
11/4/99 DJINS 12:58:00
END OF DOCUMENT |
