Flat market as rumours continue around banks

MARKET REPORT:THE IRISH market was largely flat yesterday, climbing by just 1.85 points, or less than 0.1 per cent, to finish the day at 2,465.15.

The market peaked at around 2pm, before selling off when US markets opened.

The banks continue to be dogged by "rumour, speculation and counter-speculation", as one broker sees it, but overall they held up well yesterday, with both AIB and Irish Life & Permanent (IL&P) advancing.

AIB added 4 cent, or 1.7 per cent, to climb to € 2.33, while IL&P gained 8 cent, or 7 per cent, to finish the day up at € 1.23, despite falling out of MSCI's dividend index, which has led to a sell-off in recent days.

Bank of Ireland was the under-performer on the day, falling back by 11 cent, or 8 per cent, to € 1.22, with Anglo Irish Bank also down on the day. It gave up 7 cent, or 6.7 per cent, to close at € 0.92.

Greencore announced full-year results yesterday which were in line with expectations. As a result, the stock fell back only marginally, closing down by 4 cent, or 3.8 per cent, at € 1.05.

Decent interest in CRH saw it close up by 67 cent, or 4.1 per cent, at € 17.18, but an aggressive seller in Glanbia saw that stock fall by 25 cent, or 11.9 per cent, to finish down at € 1.85.

The Iseq was also dragged down by other stocks coming out of MSCI indices, including Blackrock, CPL, Origin and Icon, all of which fell out of the MSCI Small Cap Index due to declining capitalisations.

After advancing 14 per cent on Monday, Smurfit Kappa gave up almost all of its gains yesterday and was down by an equivalent amount at one stage, before a late rally saw it close down by 21 cent, or 10.4 per cent, at € 1.80.

The British government's decision to raise travel taxes hit Ryanair, and it lost 6 cent on the day, falling back by 2 per cent to € 2.94.