Bounce for Allied Irish as massive share sale continues

DUBLIN REPORT: Iseq: 2,192.13 (-38.46) Settlement date: January 26th

THE ISEQ’S strange week continued yesterday with massive trading volumes in AIB for the second day in a row.

A total of 57 million shares traded in the stock on the Dublin and London markets, as buyers piled in.

Allied Irish Bank’s share price rose 26 per cent to 57 cent. Irish Life Permanent also enjoyed a rally, climbing 16 per cent to €1.40.

However, Bank of Ireland did not join in the bounce, and its share price fell 7.5 per cent to 37 cent, as dealers noted that US business television network CNBC was in Dublin, from where its broadcast back to a mostly US audience explored the possibility that Bank of Ireland may be nationalised.

With all the focus on the financials, Independent News Media’s ongoing descent has slipped under the radar. The stock lost a further three cent yesterday, falling 15 per cent to 21 cent, with investors shunning companies that are both laden with debt and exposed to a recessionary decline in revenues.

It was also a weak day for drinks group CC, which fell 6.6 per cent to 98 cent. This was despite the appointment of chief executive John Dunsmore to the board of Fuller Smith Turner, a 360-strong British pub chain, which analysts interpreted as being positive for its Magners cider brand in the long run.

Smurfit Kappa, which is expected by some analysts to outperform its peers in the downturn-challenged packaging sector, bounced back 11 per cent to €1.80.

Overall, the Iseq index fell 1.7 per cent on a day when its largest component, building materials group CRH, fell almost 2.5 per cent to €16.93, down 43 cent, while Ryanair fell 4.75 per cent to €2.92 and Elan dropped 3.2 per cent to €5.32.