Banks under pressure over worries about refinancing

DUBLIN REPORT: Iseq:2,698.83 (+13.34) Settlement Date:September 29th

THE BANKS came under further pressure yesterday as investors remained uncertain about their refinancing plans and the general Irish sovereign debt picture, but the Dublin market managed to make a little ground.

The Iseq index of Irish shares closed 0.5 per cent up at 2,698.83 after what traders generally described as a quiet day.

AIB, Bank of Ireland and CRH remained unpopular with investors, but Grafton, Ryanair and Smurfit all made ground.

Dealers said that AIB was under pressure from the off yesterday. They pointed out that the markets are waiting for an announcement that it intends to sell its 22½ per cent holding in US bank, MT, and to see how lenders will receive any proposals it has to refinance its existing debts.

AIB shed almost 5 per cent by the finish to close at 53.6 cents as investors sold 1.4 million shares in Dublin. Traders said those volumes were “light enough”.

Bank of Ireland also suffered, dropping 1.67 per cent to close at 59 cent.

Dublin’s biggest stock, CRH, underperformed the market and its peers, turning in a lacklustre performance to close 0.7 per cent down at €12.59. It was more than 2 per cent off earlier in the day but recovered during the afternoon.

News that exploration group Providence has come across a natural gas prospect off the south coast boosted its shares by 9.44 per cent to €1.97.

Ryanair added 1.09 per cent to close at €3.811.

Paper and packaging specialist Smurfit also enjoyed a good day. It gained 1.84 per cent to close at €7.20.

Listed bookmaker Paddy Power which has been weak for the last few days, lost 3.6 per cent to end the day at €24.94.

However, dealers suggested that it would recover this ground next week.