Iseq: 2,912.05 (+25.23) Settlement date: July 1st: IRISH LIFE Permanent saw its share price shrivel to just three cents yesterday as the market reacted to news that the group may effectively be nationalised by the end of next month.
Investors dumped the stock and its share price halved from six to three cents, giving the group a market capitalisation of just €8.3 million. This exodus followed reports that ILP would be 99 per cent State-owned by the end of July, subject to shareholder approval.
In general, volumes were fairly thin yesterday. One broker described markets as being in a state of limbo as investors waited for the outcome of Greece’s parliamentary vote on prime minister George Papandreou’s new austerity plan. However, the main European markets firmed up as investors began to take the view that Greece has no choice but to agree to the plan.
The Iseq index finished the day about 0.9 per cent higher, or 25 points, to 2,912.05.
Industrial stocks were generally positive on the Irish market. Building materials group CRH attracted buying interest and closed 11 cents higher at €14.29.
Paper and packaging group Smurfit Kappa appeared to get a bounce from its investor day in New York yesterday, rising almost 4 per cent, or 30 cents, to €8.14.
Grafton Group gained more than 2 per cent, or seven cents, to €3.35 after UK retailer Carpet-right reported full year results which were in line with expectation.
It was a day of scant stock-specific news but traders expect some action in Kerry today, as the food group is due to give an investor presentation. The stock gained 12 cents in advance of this event, bringing it to €28.
Cider manufacturer CC rose ahead of its agm and trading update today. The stock finished about two cents up at €3.62.
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