Movement in bank stocks 'shockingly negative'

DUBLIN REPORT: Iseq: 2,701.51 (-54.90) Settlement date: November 10th: THE MOVEMENT in Irish bank shares yesterday was described as "shockingly negative" by a Dublin broker.

Irish Life Permanent lost almost 20 per cent of its value, while Bank of Ireland fell 13 per cent. AIB wasn’t far behind, tumbling almost 11 per cent.

According to one broker, these movements confirmed the ongoing concerns of investors over sovereign issues surrounding so-called peripheral European economies including Ireland.

These persistent concerns seem to be having a disproportionately harsh impact on Irish financials, another analyst said.

Aer Lingus was also a mover of note on the downside. Despite the strong numbers contained in its interim management statement yesterday morning, the airline sold off in line with other Irish stocks and closed down more than 5 per cent, or six cents, to €1.11, albeit on very poor volume.

Compared to the dismal performance of most stocks on the Irish stock exchange, CRH held up relatively well. Nonetheless the cement giant, which has had a decent run of late, found itself under pressure after a positive start.

Building materials group Lafarge released results in line with expectations, which one broker said brought “more colour” and “a bit more visibility” to the sector ahead of CRH’s trading statement due out next week.

However CRH couldn’t withstand the downward pull on the Irish exchange yesterday and fell 11½ cent to €13.53.

Glanbia saw strong volumes but finished the day flat at €3.60, while Petroneft Resources was one of a handful of gainers on the day, adding 1 cent to 61 cent.

Overall the Irish market underperformed against its European peers, which were either in positive territory or flat on the day, closing down 1.99 per cent at 2,701.51.