AIB shareholders have the opportunity to make an immediate tax-free profit in they opt to take AIB shares instead of cash for their half-year dividend. The weakness in AIB shares in the middle of the month has meant that the scrip dividend will be offered to shareholders at €11.85 (£9.33) per share - the average price for the five days leading up to the August 17th ex dividend dater.
But since that ex dividend date, AIB shares have recovered strongly and although the shares lost five cents yesterday, they still closed on €12.65 (£9.96), 80 cents higher than the price at which new shares will be issued to shareholders under the scrip dividend. That, presumably, should ensure a good take-up.
AIB may have drifted yesterday, but Bank of Ireland finally put in a decent performance with the shares up 25 cents on €8.65 (£6.81), while the leading industrial stock, CRH, jumped 35 cents to €19.95 (£15.71).
Kerry was five cents firmer on €11.50 (£9.06) while Irish Life & Permanent gained 10 cents to €9.85 (£7.76)
Among the second-liners, Grafton continued to surge ahead after its bumper half-year figures and closed another €1 higher on €21.50 (£16.93).
Other second-liners to gain included Fyffes - up three cents to €1.85 (£1.46). Ryanair, however, continued its up-and-down trading within a narrow band and lost 18 cents to €8.65 (£6.81) while Smurfit was one cent easier on €2.69 (£2.12).
Among the penny shares, Tuskar jumped 50 per cent from 11/4 cents to 17/8 cents for no apparent reason.
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