ISEQ drops 1 per cent but outperforms global peers

Market Report: Shares were weaker but the market fared better than most. The ISEQ was down about 1 per cent on a day when the FTSE hit a three-week low and Wall Street was struggling.

Settlement day: June 26th

The two big banks were active, although both turned weaker despite their ongoing share buyback programmes.

AIB disclosed that it had purchased 2.6 million of its ordinary shares at an average price of 13.05 on Friday. These shares will be held as Treasury stock.

Dealers said the bank was back in the market again yesterday as was Bank of Ireland, which is also pursuing a similar strategy to alter the mix of its funding.

On the day, AIB lost 19 cent to end at 12.85. Bank of Ireland was one cent weaker at €10.59.

Among the other financials, Irish Life & Permanent shed 14 cent to close at 9.57. The life assurance and banking group will issue a trading statement today guiding the market on how its business will grow this year. The group has been severely affected by the downturn in equity markets and has warned that its growth prospects are weaker.

First Active shares were also down, closing 7 cent lower at 4.70 while Anglo Irish Bank shares lost 14 cent to end at 7.68.

Ryanair shares were traded in substantial volumes in Dublin yesterday. Dealers reported some heavy selling of the shares in the morning, with some support from buyers emerging in the afternoon as the differential between the share price in Dublin and New York widened. The shares closed down two cent at 5.94.