DUBLIN REPORT: Iseq: 2,853.96 (+22.13) Settlement date: December 16th: IRISH BANKING stocks bounced back from the "kicking" taken on Friday as markets rose around the world yesterday.
The three main banking stocks: AIB, Bank of Ireland and Irish Life Permanent (ILP) were “hammered” in the last hour and a half of trading on Friday, and this sell-off may have been “a bit overdone”, one broker said.
The three financials opened strongly yesterday, hitting what turned out to be session highs by about 9.30am. Although they had slipped back a little by the close, they still finished strongly.
Bank of Ireland led the way, adding more than 9 per cent, or almost 4 cent, to 42.3 cent. AIB closed almost 5 per cent higher at 46 cent, while ILP was about 3.5 per cent up at €1.20.
Aer Lingus, which has been exceptionally strong in the last few sessions, was a little quieter. The former flag-carrier closed off 3 cent at €1.10.
Rival airline Ryanair was also slightly weaker, shedding 2½ cent to finish just below €3.84.
Iseq heavyweight CRH helped lead the market higher. While the latest Ulster Bank Construction PMI survey showed that conditions in the Irish market remained extremely difficult in November, CRH’s exposure to Ireland is tiny, and it added 12½ cent to close at €15.22.
Grafton, whose activities have become increasingly weighted towards the UK market, also shrugged off the negative data. The stock rose more than 1 per cent, or 3½ cent, to almost €3.11, in advance of the interim management statement due out today from its UK peer Travis Perkins.
Biotech group Elan also had a strong day, rising almost 3.5 per cent to close just below €4.39.
In volume terms, it was another quiet session for the Irish market, but a rise of about 0.5 per cent meant the Iseq kept pace with most markets.
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