Recent rally in bank share prices comes to abrupt end

DUBLIN REPORT: Iseq: 2,327.65 (-117.13) Settlement date: February 3rdTHE DUBLIN stock market endured another negative trading session yesterday, as the recent rally in bank share prices came to a abrupt end.

The day’s activity was marked by very little news flow, but a lot of nerves.

The Iseq index of Irish shares shed more than 100 points, a drop of 4.5 per cent, on a day when the FTSE 100 declined 2.5 per cent. Investors were rattled by a poor jobless number out of the US and figures for new US home sales that were significantly worse than expected.

Among the financial stocks, AIBand Bank of Irelandboth fell by more than 18 per cent, with AIB losing 30 cent to finish at €1.36 and Bank of Ireland shedding 15 cent to close at 64 cent.

Irish Life & Permanentdidn't fare too much better, falling 13 per cent to close at €1.75, down 27 cent.

Building materials group CRH, the largest stock listed on the index, was under pressure yesterday, falling 6.35 per cent to 18 cent.

The stock has outperformed its peers of late.

Independent News & Mediawas the biggest faller in percentage terms, ending the day down 19 per cent at 27 cent after the momentum of the early part of the week evaporated.

Drinks group C&Cwas another faller, with sellers rushing to exit the stock pushing it down more than 6 per cent to 81 cent.

On the day when Easyjet's founder Stelios Haji-Iannou told the Davos World Economic Forum in Switzerland that rising unemployment would affect passenger numbers, Ryanairheld up better than most of its peers in the airline sector, dropping 2.4 per cent to a closing price of €3.03.

On a day with few winners, pharmaceutical group Elanwas the star performer, climbing 1.8 per cent to €5.60.