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ISEQ crash deepens - down over 70%


kerrynorth

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Another 2pc fall today. Its now about 12pc from its peak and 7pc YTD. If the Irish economy is so rosy why are all the foreign pension funds etc. bugging out?
 
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davidcochrane
2pc drop today resulted in 2 billion being wiped from ISEQ - and of course it's the banks that took the biggest hit.

It's not just the irish economy, this isn't just a local thing, there was heavy trading on the markets globally. FTSE lost 1pc if i recall the stats earlier.

But it doesn't bode well, not well at all.
 

FutureTaoiseach

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It's the fault of the US economy - specifically the sub-prime mortgage sector lending to clients with attrocious credit-ratings. €100 billion may be lost in this sector over there because of some numbskullery. In the context of the falls in ISEQ, they are falling left, right and centre around the globe. You could argue that the construction slowdown in Ireland is also playing a role - but even were it not there - the ISEQ would be nosediving because as they say, 'when the US economy sneezes the world catches cold'. Such was the case in 1929 remember? Anyway I've bailed out and disposed of my shares.
 

CookieMonster

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FutureTaoiseach said:
Anyway I've bailed out and disposed of my shares.
Thus contributing to the lack of lusture in the index, how very selfless of you. Ireland's starving children of tomorrow thank you.
 
G

Gimpanzee

specifically the sub-prime mortgage sector lending to clients with attrocious credit-ratings

same thing happened a couple of years ago with the risk mortgages, since then it has hit highs. The highs never make the 9 o'clock news though.
 

rockyracoon

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This is a world wide situation. The US economy is not performing. Their housing market is in the dung and their CDO market is in a shambles. Also their is a major shift in monetary liquidity from the US to Europe and Asia. A lot of money is seeking safe harbours. Once the monetary shift is finally over, the markets should quiet down and stablise.
 

kerrynorth

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None of those reasons explain why the ISEQ is by far the worst performer in Europe this year.
 
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FT, the fact that it is now falling means that it reached a peaked. Was this a bubble? Were there chaps out there that put their money in irrationally? In fairness, your claim that you sold out before the fall means you may not be as thick financially as you are politically.
 

locke

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Irish stocks had a value that was based on beliefs about future growth. Those predictions are looking a bit shaky considering the economic indicators. I took what managed fund investments I had out of Irish oriented funds and put them into German ones at the turn of the year. So far it's been a good move.

Of course you can blame me for the ISEQ fall then...
 

rockyracoon

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kerrynorth said:
None of those reasons explain why the ISEQ is by far the worst performer in Europe this year.
Don't forget that the ISEQ is a small cap market. By all rights it should have been absorbed by London ages ago. The banks being hit hard also has a dispropotionate impact on a such a small market.
 

kerrynorth

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locke said:
Irish stocks had a value that was based on beliefs about future growth. Those predictions are looking a bit shaky considering the economic indicators. I took what managed fund investments I had out of Irish oriented funds and put them into German ones at the turn of the year. So far it's been a good move.

Of course you can blame me for the ISEQ fall then...
(richer) traitor....hand your passport back ;)
 

hiding behind a poster

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the-analyst2007 said:
FT, the fact that it is now falling means that it reached a peaked. Was this a bubble? Were there chaps out there that put their money in irrationally? In fairness, your claim that you sold out before the fall means you may not be as thick financially as you are politically.
One would hope that, for his own sake.
 

cyberianpan

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ISEQ in crash territory!
If the Irish economy is so rosy
Don't conflate the Irish Economy & the ISEQ. Considering say employers: how many are wholly foreign now ? E.g. Google, Microsoft, Intel alone make up ~10,000 employees. Most services workers belong to the global economy. Yup the Irish Banks & Cement Companies are tanking but they don't make the whole picture of Irish economy . Also have you analysed which specific companies fell - did Food fall by much etc.

This is bad... for some.

cYp
 

FutureTaoiseach

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the-analyst2007 said:
FT, the fact that it is now falling means that it reached a peaked. Was this a bubble? Were there chaps out there that put their money in irrationally? In fairness, your claim that you sold out before the fall means you may not be as thick financially as you are politically.
I didn't sell before the fall began. I bought BOI shares at €16.43 per share and sold at €14.75.

Kerrynorth said:
None of those reasons explain why the ISEQ is by far the worst performer in Europe this year.
The reason is because the ISEQ is unusually top-heavy in financial stocks relative to the rest of Europe.
 

qtman

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I bought into a Rabobank Irish Equity Fund 4 months ago. I sold out of it last week at a 4% loss. I've been investing in Rabobank funds for 2 years. This is the only one I lost money on.
 

CookieMonster

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FutureTaoiseach said:
I didn't sell before the fall began. I bought BOI shares at €16.43 per share and sold at €14.75.
I suggest you rename yourself Future Finance Minister.
 

Anorakphobia

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The notion that international markets are causing the problem is bogus and is a giant lie peddled by Planet Dan Mc Laughlin.
Meanwhile back on planet earth a quick glance reveals most of the biggies (Dow/Dax/Hang Seng/Nikkei) are massively up on year.
Dan Mc Laughlin was on RTE 2 weeks ago blaming the ISEQ fall on "US Subprime concerns", as he was speaking the DOW was actually hitting an all time high! What a spoofer!


This is 100% linked to a flight from Ireland by institutions who view us as an overpriced kip, exacerbated by huge amounts of CFD clients baling out as teh margin calls cant or wont be met.
 

mollox

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Anorakphobia said:
The notion that international markets are causing the problem is bogus and is a giant lie peddled by Planet Dan Mc Laughlin.
Meanwhile back on planet earth a quick glance reveals most of the biggies (Dow/Dax/Hang Seng/Nikkei) are massively up on year.
Dan Mc Laughlin was on RTE 2 weeks ago blaming the ISEQ fall on "US Subprime concerns", as he was speaking the DOW was actually hitting an all time high! What a spoofer!
This is 100% linked to a flight from Ireland by institutions who view us as an overpriced kip, exacerbated by huge amounts of CFD clients baling out as teh margin calls cant or wont be met.
Dan McLaughlin is broadly correct. The sub-prime problems in the US, coupled with the slowdown in the housing market here, are the main reasons for the fall in the ISEQ.

The ISEQ is dominated by Bank stocks (AIB , BOI, Anglo, ILP etc) and Construction (CRH, Grafton, Kingspan etc) - so ISEQ has been hit much harder than other markets with a more balanced spread of industries. The Irish banks stock prices in particular have been hammered since the start of the year - it's probably a good time to buy!

The ISEQ gained something like 28% in 2006 so, a bit like the housing market, it's only those who got in recently who are nursing losses.
Most company results, both ISEQ & international, continue to be positive - and Warren Buffett hasn't started to sell.

If "hold" is good enough for the Sage of Arkansas, it's certainly good enough for me.
 

kerrynorth

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Down another 1pc already this morning.
 

zakalwe

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ouch FT, thats some hit.

i was watching BOI earlier the year (feb) at 18, then post results and dividend it went to 17 approx. think current price is a great one to invest in.

if it goes up, all well and good.
if it goes down, it (along with AIB) will be vulnerable to takeover, which will also be good for your share price.
 
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