Banks surge as Nama Bill eases fears of investors

DUBLIN REPORT: Iseq: 3,267.08 (+78.18) Settlement Date: September 16thBOLSTERED BY the strong gains of previous days, the ISEQ index made further gains yesterday finishing the day more than 2 per cent higher, with the ISEQ staying comfortably above the 3,000 market throughout the day.

Trading was brisk with volumes up on this time last year.

Banking stocks saw the most activity, with the three banks making strident gains, as the proposed Nama legislation calmed investors’ fears about the possible fate of banking equities, as the prospect of nationalisation looked remote.

Bank of Ireland was the best performer, with a larger than normal 16 million shares traded yesterday. The bank’s share price rose 25 cent, to end the day 10.3 per cent higher at €2.71. Both AIB and Irish Life Permanent were also sharply up, finishing the day at €2.58 and €5.50 respectively.

Airline stocks were some of the best performers yesterday, as the association of European airlines reported that the decline in passengers was beginning to ease.

Aer Lingus continued to bask in the glow of investor confidence, as the market expressed optimism at the arrival of new chief executive, Christopher Mueller to the airline. The former state airline soared 12.5 per cent to close at 74 cent. Ryanair also put in a stellar performance, advancing 4.88 per cent to €3.54.

CC was also up, as UK drinks company Wetherspoon released a strong set of full year results, well ahead of market expectations. CC recently secured a distribution contract with Wetherspoon and the Irish drinks group advanced 12 cent, a gain of 4.19 per cent to close at €2.89.

Pharmaceutical company, Elan was off 2 per cent on the day, despite publishing positive research on the effects of its Tysabri drug on multiple-sclerosis sufferers. Elan closed the day 11 cent lower, at €5.18.