Leading banks have mixed fortunes as market gains

MARKET REPORT:THE IRISH market finished in positive territory yesterday as some measure of confidence returned, with markets across Europe finishing up on the day. The Iseq closed up 59.01 points, or 2.2 per cent, at 2,779.39.

However, although one Dublin broker said the "portents are now pointing in the right direction" he was reluctant to suggest the markets may have actually turned a corner.

Banks benefited from another climbdown in the cost of inter-bank lending, with AIB the out-performer. It advanced by 29 cent, or 9.2 per cent, to finish the day at €3.41, and is now seen by investors as one of the safer bets among Irish banks.

Irish Life Permanent continued to perform well and added 22 cent, or 6.3 per cent, to advance to € 3.69.

However Bank of Ireland closed down nine cent, or 4.7 per cent, at € 1.83, while Anglo Irish Bank suffered from rating agency Moody's announcement that it has put the bank's credit rating on review for a possible downgrade. The stock closed down six cent, or 2.7 per cent, at € 2.03.

Independent News Media continued its run of poor form when it gave up five cent, or 6.4 per cent, yesterday to drop back to €0.73, while Smurfit Kappa was another poor performer, losing 19 cent, or 10.4 per cent, to close down at € 1.65.

Elsewhere, it was a good day for Paddy Power, which benefited from a strong statement from its British peer William Hill. The stock closed up by 66 cent, or 6.9 per cent, at € 10.26.

Construction stocks also had a positive day, with Kingspan leading the field, advancing by 16 cent, or 3.4 per cent, to € 4.91.

CRH added 46 cent, or 3.3 per cent, to close up at € 14.50, while Grafton was also a climber as it increased by seven cent, or 3.2 per cent, to finish the day at € 2.23.