DUBLIN REPORT: Iseq: 2,677.96 (-25.18) Settlement date: June 26th:AIB SHARES came under pressure yesterday due to investor fears over the bank's exposure to troubled property developer Liam Carroll. The stock finished down 5 per cent at €1.65.
It emerged on Monday that Mr Carroll is being personally sued for €60 million by Irish Nationwide Building Society. AIB is understood to have one of the largest exposures arising from his developments.
Indeed, brokers noted that any stocks with which Mr Carroll is connected suffered steep falls yesterday. For example, ferry operator Irish Continental Group (in which he has a 29.2 per cent stake) lost almost 10 per cent – or €1 – to close at €9.50, while Greencore (of which he owns 29.9 per cent) fell by just under 7 per cent to €1.22.
Brokers noted that some of the small- to mid-cap stocks that have moved up strongly in recent weeks came under pressure yesterday. This was attributed to a mixture of profit-taking and investor nervousness.
Recruitment firm CPL, for example, has enjoyed a strong run of form of late, but came back 10 per cent – or 15 cent – to €1.35 yesterday.
Independent News Media fell almost 6 per cent to below 25 cent as discussions relating to the repayment of a €200 million bond continue.
Although budget airline Ryanair announced yesterday morning that it would freeze growth in its UK bases in response to a tourist tax in place there, the market seemed to shrug this news off. The stock finished up almost 3 per cent at €3.22. Former State carrier Aer Lingus was flat on the day at just over 50 cent.
Once again market heavyweight CRH put pressure on the Iseq. Although there was heavy trading in the cement stock, it drifted down by 2.3 per cent to close at €16.55.
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