Bank shares rise on Nama vote

Bank shares remained up this afternoon on the Irish market following the news this weekend that the Green Party was backing plans…

Bank shares remained up this afternoon on the Irish market following the news this weekend that the Green Party was backing plans for the National Asset Management Agency.

On Saturday, the Green Party endorsed the Programme for Government and rejected a motion opposing the setting up of Nama by 69 per cent to 31 per cent.

"The result should mean that NAMA is virtually certain to be passed in Parliament later this month as the government has the requisite support it needs, failing a mutiny in its ranks," Davy anaylst Scott Rankin wrote in a note this morning.

The financial institutions showed considerable gains in the morning's trade, with AIB, Bank of Ireland and Irish Life and permanent all feeling the effects of the news.

By 3pm, AIB had given up some gains but was still trading up 1.8 per cent at €3.09.

There were reports over the weekend that AIB chairman Dan O'Connor has met with government officials to make its case for appointing Colm Doherty appointed as chief executive.

"However, the government is not keen on having an insider appointed, and hence a stand-off seems to have emerged," Mr Rankin said.

Irish Life and Permanent, which is not involved in Nama, was slightly up at €5.72, a 0.4 per cent rise, while Bank of Ireland gained slightly at 0.1 per cent to trade at €3.14.

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The Iseq was slightly up this afternoon, rising just over half a per cent.

Elsewhere, CRH continued to gain during the session, rising 1.2 per cent to €19.67.

New data showed the value of US highway construction put-in-place was up 8.4 per cent year-to-date to the end of September, making it one of the strongest construction end-markets in the US this year. CRH is the largest provider of raw materials into the US highway construction market.

Aer Lingus rose 9.4 per cent to 75 cent, and rival airline Ryanair made a 0.5 per cent gain to €3.46 this afternoon.

Independent News and Media, meanwhile, reversed an earlier loss of 2.3 per cent to trade flat at just over 21 cent and C&C fell 2.2 per cent to €2.68.