AIB suffers as traders exit on index sentiment

The ISEQ closed down 0.8 per cent, dragged down by the financials whose index was back by 4 per cent, and dominated by AIB's 5.3 per cent drop, casting a shadow over today's interim results.

The spectre of being dropped from the key Euro Stoxx 50 index returned to haunt the bank which also suffered from the mark-down on London's Stock Exchange on Monday. AIB closed down a 68 cents on last Friday's close, from €12.88 (£10.14) to €12.20 (£9.61). A closed market trade on Monday brought the stock to €12.43 (£9.79), giving a loss on the day of 23 cents.

There was little cheer among the other financials, as Bank of Ireland eased back 40 cents to €8.60, following the sentiment of other European markets which were lower in anticipation of US economic data on Friday. Irish Life & Permanent was static at €9.80 (£7.72) but Norwich Union was up by 14 cents to €6.21 (£4.89) following a 5 per cent increase in the group's profits.

General ISEQ stocks also fared well yesterday. Telecom Eireann was up 14 cents to €4.74 (£3.73), CRH rose 63 cents to €19.40 and Smurfit nudged up another 3 cents to €2.78, its highest this year, following its recent run. However, its US associate, Smurfit-Stone, was down 4 per cent on the Nasdaq to $22.44 (€21.03) in mid-day trade. Trinity Biotech was back 12.5 cents or 6.25 per cent to $1.875 (€1.76) and Iona Technologies eased back 50 cents or 3.3 per cent to $14.625 (€13.71).