IL&P shares suspended ahead of stress test result

Iseq:2,886.64 (+9.98) Settlement date:April 4th

THE ISEQ was the site of rare drama yesterday, as the shares of Irish Life Permanent were temporarily suspended ahead of the publication today of the Central Bank’s stress tests.

IL&P announced before the opening of markets that its shares would be suspended on both the Dublin and London markets until tomorrow, following a 45 per cent plunge in its stock on Tuesday.

Its statement noted “recent media comment” on its expected capital requirements as a result of the stress test exercises, adding that it had requested the suspension “in the light of the significant movements in the share price”.

The suspension of the bank’s shares meant investors did not have the chance to digest the suggestion, aired by Irish Life’s retail division chief executive Gerry Hassett, that the group is mulling the sale of the life assurance arm.

AIB closed up 2 per cent at 18 cent, but Bank of Ireland closed down almost 11 per cent at 22 cent, after investors reacted nervously to reports that the bank is seeking an extension to the period in which to try to raise capital from private investors.

One Dublin-based dealer noted that the market was “getting jittery” about the stress tests.

Tullow Oil closed down 2.7 per cent at €15.80, despite further progress in relation to its exploration interests in Uganda.

IFG finished up 1 cent at €1.41 after issuing full-year 2010 results in line with analysts’ expectations.

Paper and packaging group Smurfit Kappa advanced 5.4 per cent to €8.91, after a UK broker recommended the stock. Aryzta also continued its strong run, closing up 3.1 per cent at €35.30.

Ryanair was largely flat, closing up 1 cent at €3.32, though its announcement of a new €2 levy will be seen as positive for the stock.

DCC also finished flat.