Banks centre of activity on slow trading day

DUBLIN REPORT: Iseq: 3,310.01 (–4.56) Settlement date: September 30thDEALERS SAID that yesterday was largely quiet on the Irish market, with the index finishing more or less flat at 3,310.01.

The market was weak early in the day following a sell-off in both Ireland and Europe towards the close on Thursday, but it picked up as the day went on.

The banks were the focus of most of the activity, with the two bigger institutions recovering ground that they lost on Thursday.

A note from stockbroking firm Davy based on site visits to both aided their cause.

Bank of Ireland and AIB both reported an easing in funding conditions in recent weeks.

The two institutions also played down reports that one or both may go ahead with a rights issue before the end of the year with the aim of paying off some of the State’s perference shares.

Bank of Ireland added 3.05 per cent to close at €3.04, bringing it back over the €3 mark, below which it dropped on Thursday.

Investors bought just over four million shares in the bank on the Dublin market yesterday.

Dealers said that AIB traded about €3.20 for most of the day and closed 1.57 per cent up at €3.24.

Close to 3.4 million of the bank’s shares were traded in Dublin. Traders described volumes in both banks as reasonable yesterday.

Elsewhere, the market’s biggest stock, building materials giant CRH, dropped 1.12 per cent to €18.802. Packaging group Smurfit Kappa shed 4.29 per cent to close at €5.36.

Dealers said the stock has had a very good run in recent months and that there was an element of profit-taking in yesterday’s fall.

Low-cost airline Ryanair was down 1.52 per cent at €3.434, while Aer Lingus, in which it is a major shareholder, dropped 3.85 per cent to end the day at 75 cent.