Banks under pressure on day of slow trading

DUBLIN REPORT: Iseq:2,888.33 (-19.96) Settlement date:February 12th

UNITED DRUG stood out as the most actively traded stocks on what was a lacklustre day on the Dublin market in terms of volume.

The healthcare services companies issued an interim management statement yesterday in which it said that it had enjoyed a strong first quarter, and predicted that profits in its 2010 financial year would be in line with those of last year. This trading update failed to provide momentum to the company’s share price which closed pretty much unchanged at €2.21, but traders noted that it had the highest volume of shares traded on the day.

Elsewhere, the banks once again found themselves under pressure. Although volumes were light, there was strong selling interest in both AIB and Bank of Ireland. The two banks slipped 5 cent and 3 cent to €1.07 and €1.19 respectively. Irish Life Permanent was also sold off, and tumbled from above the €3 mark to close at €2.90.

Other weak names on the day included Aer Lingus, which lost 3 per cent to finish at 64.5 cent, albeit on light volume. Grafton Group was also a loser on the day, falling almost 4 per cent, or 10 cent, to €2.56. Traders reported some buying interest in Smurfit Kappa ahead of its results due out today, and the packaging group traded up by more than 1.5 per cent, or 10 cent, to €6.50.

Overall the rest of the market was fairly soft. Elan slid 11 cent to just under €5.14, while DCC lost 20 cent to close at €19.70.

Food stocks such as Aryzta and Glanbia were also weak, shedding 48 cent and 9 cent respectively to finish at €27.62 and €2.43.

The Iseq closed down about 20 points, or 0.5 per cent, at 2,888.33. Although markets in general were jittery due to macroeconomic concerns, all other European markets succeeded in getting their heads above water by the close of the session.