Housing concerns drag down banks

Market Report:The Irish market ended its recent rising streak yesterday, closing down 0.7 per cent, more-or-less in line with its European peers.

The financials, and Bank of Ireland in particular, didn't fare too well as concern about the housing market again reared its head. BofI fell 2.9 per cent, or 44 cent, to €14.99 as dealers reported the presence of a decent seller in the market in the afternoon. Anglo meanwhile closed down 1.9 per cent, or 28 cent, at €14.83, while AIB held up slightly better, slipping just 5 cent, to end the day at €20.55. Irish Life & Permanent dropped 1.8 per cent, or 35 cent, to €18.75. Volumes were pretty average in all the banks.

Elsewhere Ryanair was busy with as many as 13 million shares changing hands, a figure that prompted one dealer to say the company was probably back in the market hoovering up its own shares. The heightened activity helped push the shares higher too, with the stock closing up 3.1 per cent, or 16 cent, at €5.26 despite the rise in the price of oil.

Dealers also reported decent demand for drinks group C&C, saying the stock had seemed to find some support around the €10 level after a heavy battering last week. Yesterday the shares closed unchanged at €10.25.

Paddy Power meanwhile rose more than 2 per cent to €23.35 after the betting group raised its full-year operating profit forecast, predicting growth of 36 per cent. However, as the day progressed the shares fell back to close down 0.3 per cent, or 7 cent, at €22.78. Dealers dismissed the decline, saying the trading update was very positive, but that perhaps the upbeat mood was already priced into the stock.