MARKET REPORT:Any share that opens the day by shedding two-thirds of its value is set to be the talking point of the session and so it was today with Elan.
The Irish biotech group plummeted when markets opened on news that two patients had contracted a rare brain infection that had previosuly led to the drug’s suspension from the market.
A lunchtime briefing for analysts saw the share recover some of its losses in afternoon trade but it still closed 45.6 per cent weaker on ¤7.35, down ¤6.15 on the day, bringing its losses in a turbulent week to 65 per cent.
Elsewhere it was a relatively quiet day ahead of the bank holiday weekend with food stocks broadly positive and construction groups struggling to find friends.
Banks encountered mixed fortunes with Bank of Ireland and Irish Life & Permanent making small gains while AIB and Anglo Irish Bank, which saw more activity, slipping back.
Luxury goods group Waterford Wedgwood was unchanged despite reporting another poor set of full-year figures. Traders said that, bad though the results were, they had been well flagged to the market.
Globally, surging oil and reports of carmakers' woes fanned economic worries and hit global equities, although the dollar managed a rise on the view that Europe's economy is further from recovery than the United States.
European stocks fell, knocked lower by a sharp drop in mining shares that followed metal prices, while automakers retreated after a profit warning from BMW and massive losses at General Motors in the US.
US stocks fell as a rise in oil prices and a hefty quarterly loss from General Motors added to worries about the economy's health and the outlook for corporate earnings.
A government report showing that US employers cut jobs for the seventh straight month in July compounded the market's angst as it also showed a jump in the unemployment rate. Standout losers included shares of big manufacturers, including Caterpillar, down 1.5 per cent and technology shares, with Microsoft, down about 2 per cent.
In London, the FTSE 100 ended down 57.2 points at 5,354.7, a slight rise of 2.1 points on the week but showing a loss of 1,102.2 points for the year to date.The FTSEurofirst 300 index of top European shares closed 1.4 per cent lower at 1,163.73 points. It ended the week with a loss of 0.5 per cent. The DAX index ended at 6,396.46 points, down 83.1 or 1.28 per cent, dropping 40.25 points since last weekend. The CAC-40 index closed at 4,314.34 points, down 78.02 or 1.78 per cent, losing 62.84 points since last Friday.
The Iseq Overall Index ended the day 6.45 per cent weaker on 5,407.86.
Additional reporting: Reuters
