Ireland Stock Market Weekly Review: ISEQ Slips as Banks Drag While Kingspan and Ryanair Stand Out (1

Dublin – 6 December 2025

Ireland’s stock market cooled this week after a strong November run, with the ISEQ All‑Share index edging lower as bank stocks came under pressure despite upbeat economic data and strength in select blue chips such as Kingspan and Ryanair.

The ISEQ closed on Friday at 12,741.69, down 0.04% on the day and roughly 0.7% below last Friday’s close, even as it remains up about 4.5% over the past month and more than 30% year‑to‑date, near its 52‑week high around 12,926 points. ^[1]

ISEQ Performance: Mild Weekly Pullback After Strong Rally

Based on Euronext Dublin data compiled by Investing.com and other index providers, the ISEQ All‑Share traded as follows over the five trading days from Monday 1 December to Friday 5 December: ^[2]

Monday 1 Dec: 12,849.51 (+0.10%)
Tuesday 2 Dec: 12,750.68 (‑0.77%)
Wednesday 3 Dec: 12,766.46 (+0.12%)
Thursday 4 Dec: 12,746.24 (‑0.16%)
Friday 5 Dec: 12,741.69 (‑0.04%)

Measured Friday‑to‑Friday, the index slipped about 0.74%, while from Monday’s close to Friday’s it lost roughly 0.8%, reflecting a modest bout of profit‑taking after November’s surge. ^[3]

The ISEQ 20, which tracks the largest Irish stocks, also finished the week lower, falling from around 3,345 points on Monday to just under 3,320 on Friday – a decline of close to 0.8%, broadly in line with the wider market. ^[4]

Financials were a clear drag. The ISEQ Financial Index dropped from 691.91 on Monday to 678.27 on Friday, a fall of almost 2% across the week and more than 1.1% compared with the previous Friday. ^[5]

Despite the pullback, Irish equities remain among Europe’s better performers in 2025, with the national benchmark up over 30% year‑to‑date and sitting comfortably in the upper end of its 52‑week range. ^[6]

Day‑by‑Day: What Moved Irish Shares on Euronext Dublin

Monday 1 December – Crypto jitters, but Dublin edges higher

Global markets paused after a five‑session winning streak, with investors waiting on key US economic data and a speech from Federal Reserve chair Jay Powell. A sharp sell‑off in Bitcoin weighed on crypto‑linked stocks and tech globally. ^[7]

In Dublin, the ISEQ eked out a 0.1% gain, mirroring the cautious tone in Europe. ^[8]

Ryanair slipped 0.5% to €28.08 after confirming the closure of its frequent flyer club, a move seen as simplifying its product offering but raising short‑term questions about customer loyalty schemes. ^[9]
AIB added 0.4% to €8.88, and Bank of Ireland climbed 1.6% to €16.22, extending November’s strong run for Irish banks and helping offset weakness elsewhere. ^[10]

Tuesday 2 December – ISEQ underperforms as Kerry and Ryanair slide

On Tuesday, European shares were broadly flat, as gains in big banks balanced losses in healthcare, with Bayer notably rebounding on legal news in the US. ^[11]

The ISEQ underperformed, ending down 0.77% at 12,750.68 after several of its heavyweights lost ground. ^[12]

Among the most traded Irish names, Kerry Group fell 2.19%, while Ryanair dropped 1.35%, together accounting for much of the index’s decline. ^[13]
Irish Continental Group, the ferry and freight operator, bucked the trend with a 4.53% gain to €6.00.
FBD Holdings, the domestic insurer, rose 3.31%, highlighting ongoing investor interest in domestically focused financials despite the broader banking sector’s volatility. ^[14]

Wednesday 3 December – Kingspan rebounds on “grossly undervalued” call

By mid‑week, sentiment improved slightly. The ISEQ finished about 0.1% higher, even as global markets looked jittery with investors reassessing the timing and scale of potential Fed rate cuts. ^[15]

The standout performer was Kingspan:

The insulation and building materials group rose around 1.5%, trading heavily after brokerage Goodbody said the shares were “grossly undervalued” despite record profits and strong structural growth prospects, arguing that the market had “lost sight” of Kingspan’s long‑term growth drivers. ^[16]

Elsewhere in Dublin:

Kerry Group gained about 0.6% as some investors rotated back into defensive food names.
Bank stocks weakened, with AIB and Bank of Ireland both giving up part of their recent gains, illustrating lingering caution around financial valuations even in a strong economy. ^[17]

Thursday 4 December – Builders support the market, but Kingspan and Kerry weigh

European equities advanced on Thursday, led by car‑makers after news that US President Donald Trump planned to ease fuel‑economy standards, which would favour traditional combustion‑engine vehicles. ^[18]

In Dublin, however, the ISEQ slipped 0.16% to 12,746.24, surrendering Wednesday’s progress and a little more. ^[19]

Cairn Homes was the day’s biggest gainer, up 1.81% to €2.03, with Glenveagh Properties just in the green at +0.1%. Housebuilders continued to benefit from robust domestic demand and supportive credit conditions. ^[20]
Ryanair eased 0.18% to €27.67, backing off recent €28 highs.
Kerry Group fell 1.33% to €77.65, and Bank of Ireland edged down 0.03%.
Kingspan lost another 0.54% to €73.50, still digesting recent strength and broker upgrades. ^[21]

Friday 5 December – Banks drag as Fed‑cut bets lift global risk appetite

Friday’s global session was dominated by long‑delayed US economic data showing inflation in line with expectations, reinforcing the market view that the Federal Reserve is likely to cut rates next week. Global indices, including the S&P 500, moved higher, with the US benchmark sitting just below its October record. ^[22]

In Dublin, the ISEQ index “was modestly lower”, dipping by less than 0.1% and extending its losing streak to two sessions, despite broad risk‑on sentiment abroad. ^[23]

Bank of Ireland closed at €15.86, down 1.3% on the day.
AIB fell 2.4% to €8.70, making Irish banks one of the week’s weakest segments and dragging the ISEQ Financial sub‑index to an almost 2% decline between Monday and Friday. ^[24]
Ryanair advanced by more than 1% to €27.95, supported by ongoing optimism about travel demand and the airline’s expanded fleet. ^[25]
Cairn Homes was flat, consolidating its earlier gains.
Kingspan rallied more than 2% to around €75, capping a solid weekly rebound aided by the lingering Goodbody “undervalued” call. ^[26]

With Euronext Dublin closed on Saturday 6 December, the week’s trading effectively ended with Friday’s mild pullback.

Macro Backdrop: Strong Growth Signals with Moderate Inflation

The market’s tone this week was shaped as much by domestic data as by international news.

Services and manufacturing PMIs signal broad‑based expansion

Ireland’s services sector logged its strongest growth in over three years in November. The AIB Ireland Services Business Activity Index jumped to 58.5 from 56.7 in October – the fastest pace since May 2022. Financial services led the expansion, followed by technology, media and telecoms, while transport, tourism and leisure saw their first increase in activity since February, a notable positive for Ryanair and related stocks. ^[27]

On the industrial side, the AIB Manufacturing PMI climbed to 52.8 in November from 50.9, marking the fastest expansion since July and comfortably above the 50 threshold that separates growth from contraction. New orders and exports both improved, and several analyses highlighted that operating conditions have been improving every month so far in 2025. ^[28]

Some market commentators have argued that this divergence – strong Irish PMIs versus more subdued readings in parts of continental Europe – positions Irish equities to outperform European peers in the near term, particularly in cyclical sectors geared to domestic demand. ^[29]

Domestic economy: solid MDD, softer headline GDP

Fresh figures from the Central Statistics Office (CSO) showed Ireland’s modified domestic demand (MDD) – a preferred measure of the underlying domestic economy – grew 2.3% quarter‑on‑quarter in Q3, driven largely by an 8.3% jump in investment in areas such as software, aircraft and R&D by domestic firms. MDD is up 4.1% in the first nine months of 2025. ^[30]

Headline GDP dipped 0.3% in Q3, although it remains 15.8% higher year‑to‑date, boosted by strong pharmaceutical exports to the US. ^[31]

In response, the finance ministry has raised its 2025 MDD growth forecast to 3.3% from 2%, underlining official confidence that the domestic economy can withstand external headwinds such as US tariffs and global uncertainty. ^[32]

Inflation and unemployment: supportive but not risk‑free

On 1 December, the CSO’s flash estimate for the Harmonised Index of Consumer Prices (HICP) indicated that prices were 3.2% higher in the 12 months to November 2025, up from 2.8% in October but with a 0.2% month‑on‑month decline. ^[33]

Food prices were unchanged on the month but rose 4.2% over the year, keeping pressure on households. Analysts note that part of the annual inflation uptick reflects a low base in November 2024 rather than a fresh inflation shock, and seasonally adjusted measures suggest underlying inflation is slightly lower than the headline rate. ^[34]

Meanwhile, unemployment fell to 4.9% in November, down from 5.0% in October, though still above the 4.2% level recorded a year earlier. The seasonally adjusted number of unemployed stood at about 144,400, its lowest since June. ^[35]

Taken together, the data portray an economy with:

Strong services and manufacturing momentum
A tight but not overheated labour market
Moderately elevated inflation, but below earlier peaks

This backdrop generally supports risk assets, helping explain why Irish equities remain near multi‑year highs even after this week’s dip.

Wealth, Participation and Valuations: What Recent Research Says

Beyond short‑term price moves, several publications this week highlighted deeper structural themes relevant to the Irish stock market.

Household wealth surging, but capital markets underused

A new Davy report, Wealth in Ireland: Remarkable recovery, but no room for complacency, notes that Irish households’ net wealth has more than doubled over the past decade, rising from €573 billion in 2014 to €1.32 trillion in 2024, and is projected to approach €2.6 trillion by 2035. ^[36]

However, much of this reflects house price inflation rather than diversified financial assets, and Davy argues that non‑housing wealth has lagged the pace of the domestic economy (GNI*). The report highlights under‑investment in pensions and relatively slow growth in the value of privately held Irish businesses, suggesting that many households are not optimising their financial resources for long‑term returns. ^[37]

In parallel, a Central Bank of Ireland consumer‑research report released on 1 December concluded that Irish households have one of the lowest levels of direct participation in capital markets in the EU, with wealth more heavily concentrated in property, life assurance and traditional savings products than in listed equities or funds. Participation is skewed towards wealthier households, men, and those aged 35‑54 in the greater Dublin area. ^[38]

For the equity market, this means:

Strong aggregate household balance sheets
But a narrow domestic investor base, limiting local liquidity and potentially amplifying swings driven by international flows

Financial stability and valuation risks

The Central Bank’s Financial Stability Review, published in mid‑November, warned that “stretched valuations in segments of global financial markets and continued trade and economic uncertainty” remain among the main risks facing Ireland’s financial system. ^[39]

Combined with elevated Irish equity prices – the ISEQ has gained more than 30% so far in 2025 – this has made regulators and some institutional investors more vocal about the need for prudent risk management, particularly in leveraged sectors and real‑estate‑linked exposures. ^[40]

At the same time, targeted company research continues to identify perceived pockets of value:

Goodbody’s note on Kingspan, widely circulated this week, argued that the stock is “grossly undervalued” relative to its long‑term structural growth prospects and recent record profits, contending that the market has lost sight of its multi‑year story. ^[41]

This split narrative – macro‑level concern about stretched valuations but micro‑level conviction in certain names – is increasingly shaping how investors approach Irish equities: more selective, more stock‑specific, and less reliant on broad index exposure.

Stock‑Specific Themes: Banks, Builders, Ryanair and PTSB

Banks: strong fundamentals, softer sentiment

Irish banks remain a core component of the ISEQ, and their moves often drive index‑level performance.

This week AIB and Bank of Ireland were weak, particularly on Friday when they fell 2.4% and 1.3% respectively, dragging the financials index nearly 2% lower between Monday and Friday. ^[42]
That pullback follows a powerful rally through November, when Euronext Dublin market reports frequently highlighted banks as a key driver of index gains. ^[43]

Fundamentally, the backdrop remains supportive: PMI data show financial services leading services‑sector growth, loan demand is being underpinned by solid employment, and official forecasts still point to robust domestic activity. ^[44]

However, with the Central Bank flagging valuation risks globally and markets increasingly pricing in lower interest rates in 2026 and beyond, investors are starting to re‑examine earnings expectations for rate‑sensitive names. ^[45]

Property and construction: builders firm, Kingspan in focus

Irish residential developers Cairn Homes and Glenveagh both traded well this week, with Cairn up almost 2% on Thursday and holding those gains into Friday. The moves reflect a combination of local housing demand, planning approvals and continued investor belief that supply constraints will keep pricing power with builders. ^[46]

Kingspan, meanwhile, was one of the most closely watched stocks:

The share price fell earlier in the week but rebounded strongly on Wednesday and Friday, ending the week near €75, helped by Goodbody’s upbeat valuation call. ^[47]
The building‑materials group has materially outperformed many European construction peers operationally but, according to Goodbody and others, still trades at a discount to comparable companies. ^[48]

For investors, Kingspan has become something of a proxy for the broader question of whether quality Irish industrials still offer value after the market’s 2025 surge.

Airlines and tourism: Ryanair leverages macro tailwinds

Ryanair had a choppy but ultimately positive week:

Down modestly on Monday after news of the frequent‑flyer club closure,
Weaker again on Tuesday,
Then recovering later in the week to close Friday more than 1% higher at €27.95. ^[49]

The stock is benefiting from several supportive trends:

Strong domestic services and tourism activity, as highlighted in PMI surveys. ^[50]
Increased aircraft deliveries, which Reuters noted as one contributor to the surge in investment captured in Q3 national accounts. ^[51]

Trading and corporate actions: Permanent TSB and Origin

Beyond the index heavyweights, a handful of regulatory filings and corporate actions reminded investors of ongoing deal and trading activity in Irish financial assets:

J&E Davy, acting as an exempt principal trader connected to Permanent TSB Group Holdings, disclosed that on 3 December it bought over 112,000 PTSB shares and sold roughly 59,000 at prices around €3.07–€3.12, in line with Irish Takeover Panel rules. ^[52]
Origin Enterprises, the agri‑services group, reported a re‑issuance of treasury shares on Euronext Growth Dublin this week, underlining how Irish corporates continue to use the local market for capital‑management transactions even as many maintain primary listings abroad. ^[53]

These developments may not move the ISEQ in the short term, but they are relevant for liquidity, free float and index composition over time.

Outlook: Cautious Optimism as Rate‑Cut Hopes Meet Valuation Reality

Looking ahead to the remainder of December and into 2026, several themes are likely to shape Ireland’s stock market:

Interest‑rate path
- Markets now treat a December Fed rate cut as highly likely, and expect the ECB to stay on hold but keep policy relatively accommodative while euro‑area inflation hovers near target. ^[54]
- Lower global yields would generally support equity valuations, but may compress bank margins and shift leadership back towards growth and quality names like Kingspan, Kerry and high‑quality REITs.
Domestic growth vs. external shocks
- Ireland’s domestic economy continues to show strong underlying momentum, with robust PMIs, solid employment and upgraded MDD growth forecasts. ^[55]
- However, headline GDP remains heavily influenced by multinational and trade dynamics. Any slowdown in pharma exports or renewed tariff tensions could hit the headline numbers and, by extension, sentiment. ^[56]
Valuation and participation risks
- With the ISEQ up over 30% year‑to‑date and some global regulators warning about stretched valuations, Irish equities are no longer obviously cheap at the index level. ^[57]
- At the same time, low direct household participation in capital markets means that rallies and corrections can be driven disproportionately by institutional and foreign investors, potentially amplifying volatility. ^[58]
Sector rotation and stock selection
- Banks have had a blockbuster year but were weak this week; investors will watch closely to see whether this is a short‑term pause or the start of a broader rotation. ^[59]
- Cyclical and domestically geared sectors – builders, financials, and consumer‑facing businesses – could continue to benefit from strong PMIs and falling unemployment.
- High‑quality exporters like Kingspan and globally exposed Irish names may draw renewed interest if investors pivot towards secular growth stories amid slowing global headline growth. ^[60]

For now, the base case implied by data and research released between 1 and 6 December 2025 is one of cautious optimism:

A still‑resilient Irish economy
An equity market near record highs but no longer cheap
Pockets of perceived value in select blue chips
And a regulatory backdrop increasingly focused on financial stability and better retail participation in capital markets

Investors, in other words, are shifting from riding the wave of a broad rally to picking their spots more carefully within Ireland’s market.

This article is for information purposes only and does not constitute investment advice or a recommendation to buy or sell any security.

References

Ireland Stock Market Weekly Review: ISEQ Slips as Banks Drag While Kingspan and Ryanair Stand Out (1–6 December 2025)