Iseq 'jittery' over stress tests

The Iseq was the site of rare drama today, 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 Friday, following a 45 per cent plunge in its stock yesterday.

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.

There were contrasting fortunes for the two remaining banks on the Iseq. Bank of Ireland closed down almost 11 per cent at 22 cent, after investors reacted nervously to reports that the bank's executives are 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, on a day in which the company announced 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. Food group 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 viewed as positive for the stock, as it means it can pass on the uncertain costs of complying with EU passenger compensation legislation.

DCC also finished flat, despite the fact that Dixons posted a profit warning. The electronics chain is a major customer of the retail distribution element of DCC's Sercom division.

Overall, the Iseq finished up marginally, in line with the performance of London's FTSE 100 index, but lagging a more emphatically positive day on the French and German markets.