The Irish stock market suffered a dramatic fall today, losing almost 6% of its value to close at its lowest level for almost five years.
Dublin's ISEQ index closed down 272 points, or 5.8%, at 4,415, wiping around €2 billion off the value of shares. Banks and airline shares were among the biggest fallers. The ISEQ has now lost 9% of its value this week, wiping around €5.3 billion off the value of shares.
The falls came as a slide on world markets accelerated this afternoon due to concerns about the financial health of two of the most important US mortgage companies, Fannie Mae and Freddie Mac. Record high oil prices also affected shares.
US stock markets were sharply lower, with the Dow Jones tumbling 202 points to 11,027 and the Nasdaq losing 33 points to 2,225. Shares in the two mortgage companies were down more than 40% amid talk of a government bail-out.
London's FTSE dropped 145 points (2.7%) to close at 5,262, its lowest level in almost three years. Royal Bank of Scotland lost 8.6% to almost 183p and Barclays was down 6% to 268p. In Paris the CAC tumbled 3% to 4,101 and in Frankfurt the DAX was down 2.4% at 6,153. Earlier this morning, Tokyo's Nikkei 225 index closed 28 points lower at 130,40.
In Dublin, high oil prices hit airlines, with Aer Lingus closing down 10 cent at €1.22 and Ryanair losing 14 to €2.53. AIB plunged 86 cent to €7.35 and drinks group C&C dived 30 cent to €2.42 after warning of an uncertain outlook for sales due to weak economic conditions and bad weather. Food group Greencore plummeted almost 20% to €1.43.
