IL&P drops as controversy over deposits stalls market

Iseq:2,407.82 (-37.16) Settlement date:February 16th

INVESTORS CONTINUED to sit on the fence yesterday as they waited for the Government to unveil its grand plan for recapitalising AIBand Bank of Ireland.

However, Irish Life & Permanent fell sharply out of favour on the news that it had provided exceptional deposit support to Anglo Irish Bank last September. The stock, which was one of the most actively traded on the Irish market yesterday, lost close to 19 per cent in early trading, but recovered somewhat over the course of the day to close down almost 10 per cent, or 21 cent, at €1.94.

Both Bank of Ireland and AIB were also down on the day, falling more than 12 per cent and 7 per cent respectively to close at €0.61 and €1.08.

Elsewhere, results released by Smurfit Kappawere broadly in line with expectations and its share price remained virtually unchanged at €1.07.

There was renewed investor interest in Paddy Power, and the stock proved to be the clear winner on the day.

Even though commentators continue to question its ability to withstand current macroeconomic difficulties, the bookmaker bucked the downward trend in the market and jumped 41 cent, or 3.7 per cent, to €11.60.

Meanwhile, cement giant CRHwas marked up by the market by eight cent to €18.86.

However, Kingspanslipped by 10 cent, or almost 4 per cent, to €2.46, while McInerney Holdings lost one cent to close at €0.10.

The airline industry also suffered yesterday, with Aer Lingusfalling close to 5 per cent, or five cent, to €1.02, and Ryanairsliding two cent to €3.21.

Elanwas another loser on the day, trading down by 43 cent, almost 7 per cent to €5.82.

This was mainly due to the lack of clarity as to how the company is going to continue funding its operations.