Irish share prices hammered as vote sends Iseq into 12pc slump

Many of Ireland’s largest companies have seen their share price rocked this morning following the UK’s decision to leave the European Union.

The Iseq has suffered a 12.73pc fall so far this morning with shares in Permanent TSB, Bank of Ireland, Paddy Power Betfair, and CRH amongst the worst hit.

Shares in PTSB are down 26pc, with Paddy Power Betfair falling by 15.57pc.

Smurfit Kappa is down 10.35pc while Total Produce is down 14.97pc so far this morning.
Transport firms were hit this morning by the fallout of the vote also. Ryanair fell by 13pc and Irish Continental Group, the company that owns Irish Ferries is down 9.17pc.

Meanwhile shares in Grafton Group are down 18.4pc in opening trading.
Bank of Ireland shares are down 23pc so far this morning while Patrick Coveney’s Greencore has dipped 12.62pc.

Willie Walsh’s IAG group, the airline firm that owns Aer Lingus, which is listed in the UK, is down 13pc.
The fall in share prices across Irish firms represents the immediate impact of the Brexit vote, however the specifics of its long term effects remain unknown. The outcome may put a question mark over the flotation of AIB in both the short and medium term.

The Irish market is not alone in suffering the consequences of the UK’s historical referendum. This morning’s result has sent sterling plunging this morning holding an adverse effect on most of the global markets.
British markets plunged on Friday, with sterling hitting a 31-year low in its biggest fall on record and UK stock futures pointing to a steep fall at the market open.

Bonds also sold off sharply, pushing UK government borrowing costs sharply higher, as traders and investors grappled with the market implications of ‘Brexit’.
The pound had hit a 2016 high above $1.50 after an earlier opinion poll showed an outcome in favor of ‘Remain’, but fell nearly 17 cents from that peak as area counts came in and TV stations said the Brexit camp had won the landmark referendum.

The British currency’s fall of almost 10 percent was also historic, marking a decline greater than anything seen since free-floating system of exchange rates was introduced in the early 1970s.
It was even bigger than on ‘Black Wednesday’ in 1992, when billionaire financier George Soros was instrumental in pushing the pound out of the Exchange Rate Mechanism.

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