DUBLIN REPORT Iseq: 2,377.65 (-72.09) Settlement date: April 23rd

THE BIGGEST news of the day once again emanated from the banking sector, with AIBannouncing that it aims to improve its capital base by raising €1.5 billion through the disposal of assets.

The bank’s stock skyrocketed in early trade on the back of the news. One broker noted that investors appeared to take the view that, if the bank succeeded in “getting capital in the front door” by means of asset disposals, it was less likely that the Government would take a majority shareholding. Avoiding this scenario would be “better for the bank and better for the equity shareholders”, he said.

But after a strong start, the stock came off in the afternoon – in line with the overall market, which took a hammering in the afternoon session – and closed up 2.33 per cent at €0.88.

European markets were off by about 3.5 per cent on the day, while the Iseq index of overall shares slipped almost 3 per cent to 2,377.65.

CRH, the index's largest component, was the biggest drag on the market, tumbling more than 6 per cent to €16.54. The fall was due to downward momentum across the wider market rather than any stock-specific news.

Budget airline Ryanair,which has the second-largest weighting on the Iseq, also closed down yesterday, falling more than six cent, or 1.94 per cent, to €3.19.

Independent News & Media, meanwhile, proved to be one of the strongest performers of the day, closing up more than 18 per cent at €0.225.

This may have been prompted by media reports over the weekend that the group was considering selling two of its titles, which would help to reduce its debt load. But brokers cautioned against reading too much into the jump as the stock is currently trading at very low levels.