# Iseq - Falling



## phoenix_n (28 Nov 2006)

Does anyone know what is happening to the Irish Stock market. Looks like every share is falling especially one particular financial institution bank.

Wondering if stock brokers have wind of something.


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## Guest126 (28 Nov 2006)

Weren't nearly all global indices down yesterday because of the dollar weakness?


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## room305 (28 Nov 2006)

This happens frequently after a strong run.


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## zac (28 Nov 2006)

it cant go up every day, went from 8000 to 9000 in no time, needs a breather.


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## phoenix_n (28 Nov 2006)

zac said:


> it cant go up every day, went from 8000 to 9000 in no time, needs a breather.


 
Maybe but wondering why it is across the board.

Wonder if someone could explain this to me. On davy.ie when you look at a share there is _bid price_ say 20euros, and and _ask price_ of say 21euros.

Is the bid price what someone wants to buy the share and the ask what the other party is offering....?


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## Brendan Burgess (28 Nov 2006)

The stockmarket tends to have a fairly random pattern about its overall upward movement. There might be rumours about interest rates or exchange rates which prompt a move. Journalists have a tough time explaining the moves and often put it down to profit-taking. 

I have not heard of any one-off issue which caused a problem today. The best source of breaking business news is http://www.rte.ie/business/

Brendan


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## baby_tooth (28 Nov 2006)

there is a general convern with regard to assets, especailly those ones connceted to companies exposed to either oil, ur the dollar, be them us companies or euro companies exporting their.

Dollar is starting, what many think is a slide to correct its trade deficit.

But as Brendan said, there is alot of randomness to stock market movement, as well as a  herd mentality.


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## Guest126 (28 Nov 2006)

A market maker quotes two prices:

Bid Price is price at which maker maker will buy the share.

Offer(Ask) Price is price at which market maker will sell the share.

As you would expect...Offer(Ask) Price > Bid Price.

Margin = profit for simultaneously buying and selling a share for market maker.


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## phoenix_n (28 Nov 2006)

Thanks Capital for the explanation on bid or ask.

How would the change (or expected change) in the value of the dollar affect say Irish banks


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## Guest126 (28 Nov 2006)

Because many Irish Banks make significant profits by acting as corporate bankers to US multinationals etc...if things don't go well for US multinationals, things don't go so well for Irish banks (that is just one example, I am sure there are lots and lots of reasons)...basically if American is looking at poor equity market returns, one would expect things won't exactly be great on the Iseq either.


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## phoenix_n (28 Nov 2006)

CapitalCCC said:


> Because many Irish Banks make significant profits by acting as corporate bankers to US multinationals etc...if things don't go well for US multinationals, things don't go so well for Irish banks (that is just one example, I am sure there are lots and lots of reasons)...basically if American is looking at poor equity market returns, one would expect things won't exactly be great on the Iseq either.


 
Might be related to this in the states

Before the open, the Commerce Department reported orders for durable goods suffered their biggest fall since July 2000, suggesting the market for big-ticket manufacturing items was declining.


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## Sunny (28 Nov 2006)

phoenix_n said:


> Might be related to this in the states
> 
> Before the open, the Commerce Department reported orders for durable goods suffered their biggest fall since July 2000, suggesting the market for big-ticket manufacturing items was declining.


 

The profits that Irish banks make from American multinationals business is insignificant. The only reason to create a link would be if the multinationals decided to pull out of Ireland, leading to job losses, rising bad debts and poor economic performance. None of the Irish Banks are significantly exposed directly to the US with the exception of AIB through its stake in the old Allfirst bank ther and Anglo do some lending over there as well as far as I know. Irish bank shares are still a play on the Irish economy and especially the Irish construction and property markets. Outside influences that impact on these areas are of much more concern to the banks than a falling Nasdaq or weakening USD. (within reason of course)


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## gearoidmm (28 Nov 2006)

Quite a few Irish companies derive a substantial proportion of their profits from American subsidiaries and so would be expected to suffer if there ws a sustained fall in the value of the dollar.  Whether this fall will materialise is a different matter altogether.  Some have been predicting it for years as a direct result of the huge trade deficit.

See www.itulip.com for a biased but informative view on the future of the US dollar and the US economy in general


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## hmmm (28 Nov 2006)

Sunny put it best, Irish banks are seen as a play on the Irish economy in general, so when investors think the Irish economy will do less well than they thought it would do yesterday they can end up selling the banks.

If you see a broad up or down tick in share prices across the board, it's usually on broad economic grounds - yesterday and today was worries about the strength of the US economy. If oil prices tick up, you can see the oil majors doing well and those companies with high oil raw material requirements go down (and vice versa). 

By the way, looking at the stock market prices on a day to day basis is not good for your health. Invest in good companies (or funds) and get on with your life without reloading the price pages all day - prices will fluctuate and you'll be euphoric one day and miserable the next.


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## phoenix_n (28 Nov 2006)

hmmm said:


> By the way, looking at the stock market prices on a day to day basis is not good for your health. Invest in good companies (or funds) and get on with your life without reloading the price pages all day - prices will fluctuate and you'll be euphoric one day and miserable the next.


 
 Maybe. But just watched an Irish bank lose 60cents in one day.


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## CCOVICH (28 Nov 2006)

Getting into discussion of individual shares.


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