ECB cash injection helps shares rebound

Dublin report: Shares rebounded around Europe yesterday after last week's decimation as yet another injection of cash by the…

Dublin report:Shares rebounded around Europe yesterday after last week's decimation as yet another injection of cash by the European Central Bank (ECB) helped to ease concerns.

The Iseq was no exception, rising 2 per cent, to end the day at 8,513. The ECB has now injected more than €200 billion into the financial system in a bid to shore up what have been very volatile global markets.

In a complete reverse of Friday's events, the financials were the main gainers, with significant demand for Anglo in particular helping to boost prices.

Shares in the bank closed 4.9 per cent, or 65 cent higher, at €14.05, with almost 6 million units changing hands.

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AIB was less busy, though still a significant gainer, rising 4.3 per cent, or 80 cent, to end the day at €19.20, while Bank of Ireland closed up 3.8 per cent, or 51 cent, at €13.85.

Irish Life & Permanent was also strong, gaining 3.4 per cent, or 60 cent, to close at €18.20.

Elsewhere Independent News & Media was strong, adding 5.5 per cent, or 17 cent, to end the day at €3.29, though volume was relatively light and dealers said the gains were simply the result of a strong market rather than any stock-specific news.

Ryanair meanwhile, was one of the few losers on the day, dropping 2.3 per cent, or 12 cent, to close at €5.21. Traders attributed the decline to the fact that a significant amount of trading in Ryanair shares is usually done in contracts for difference, a method of share buying that is particularly risky in volatile markets.

CRH was also disappointing, gaining just 0.8 per cent, or 26 cent, to close at €31.81 in what was a strong market. Dealers couldn't pinpoint a reason, but said there seemed to be a significant number of sellers around.