Wednesday, October 23 12:54:43
The ISEQ fell in step with the rest of Europe's markets this morning as banking stocks slid after the ECB set out plans for a new, tougher stress tests.
The ISEQ fell 20.10 points to 4,371.79.
Banks dropped 2.1 percent after the ECB said it would review the quality of a broader-than-expected range of assets held by top regional lenders next year, which may result in them having to raise fresh capital. "The biggest news is that it has been confirmed that it's not just loans that will be looked at during the asset quality review," Benjie Creelan-Sandford, a banking analyst at Macquarie Research, said.
In the UK, Home Retail Group released its H1 results. Encouragingly, Argos delivered its fifth quarter of like-for-like (LFL) sales growth, helped by its multi-channel distribution strategy. Argos' results are encouraging for DCC SerCom, showing that growth continues in the retail space, that tablets continue to be a strong driver of growth and that value-add strategies such as multi-channel solutions are an important part of the retailer's strategy, said Davy Research. "We continue to view DCC SerCom as a strong performer," the broker said.