Banks do well as C&C gets good reason to celebrate

DUBLIN REPORT: Iseq: 2,723.86 (+32.56) Settlement date: July 2ndTHE ISEQ closed higher yesterday in line with the upward trajectory of the main European markets. Activity was low, however, with the volume of transactions remaining light throughout the day.

It was a good day for banking shares. AIB gained almost 1 per cent to close at €1.695, while Bank of Ireland closed up just over 2 per cent to close at €1.713. These relatively modest gains were overshadowed by Irish Life & Permanent which gained over 8.5 per cent to close on €3.367, with some analysts attributing the move to the stock’s below-par performance in previous days.

Drinks group C&C was another strong performer yesterday, closing up four cent on €2.42. The rise came on the back of reports from industry analyst AC Neilsen that sales of the company’s Magners cider at British stores rose 22 per cent by volume in the four weeks to June 15th compared with the year-earlier period.

The performance of the company’s new pear cider was also exceptionally strong, according to the report, accounting for 18 per cent of volumes.

Pharmaceutical company Elan had a choppy day. By lunchtime it had risen to €5.48, in response to weekend media reports that Novaris is in talks to buy part of the company. By close of trading the stock had slipped back to €4.99, a drop of eight points on the previous day.

The Iseq’s largest constituent CRH advanced 18 cent in the session to €16.33. The cement company’s gains mirrored that of many of its international peers such as Saint Gobain and Lafarge which were also up.

Independent News & Media was one of the worst performers yesterday, closing the day 6 per cent lower, on 23.5 cent as concerns about its ability to repay its €200 million bond continued to drain confidence.