Banking stocks dip sharply in Dublin

Irish financial stocks were sharply lower this afternoon as the Dublin market adjusted to steep share price falls in the UK yesterday when the Iseq was closed.

At 12.32pm the Iseq was off 2.5 per cent or 157 points at 5,948.

Dublin analysts said the sharp falls in the value of Irish banking stocks was a “catch-up” to the market reaction in London yesterday to problems at UK lender Bradford & Bingley.

“There is a catch up in the pricing to what is happening. If you look at it cumulatively over the two days, most of the main financials are actually up on aggregate”, said one.

On the day Bank of Ireland shares have fallen 7.7 per cent to €7.51 having earlier dropped over 10 per cent in to hit a record low of €7.24.

The biggest faller at the midway stage was Anglo Irish Bank, with its shares off 8 per cent at €7.72.
Irish Life and Permanent shares were behind 5.9 per cent at €10.58 while AIB has shed 3.9 per cent of its value to €12.39.

A newspaper report this morning that US giant Lehman Brothers may need to raise more capital has added to fears that the credit crisis is back and has unsettled financial markets.

Other fallers in Dublin today include Independent News & Media, which shed up to 7.8 per cent in early trade, before rallying to reach 12.32pm at €2.20, a falloff 4.34 per cent.

However, Ryanair shares defied the gloom this morning to move ahead almost 6 per cent after reporting a 20 per cent rise in adjusted full-year profits after tax to €480.9 million.

The airline also said it would take up to 20 aircraft temporarily out of service mainly at Stansted and Dublin, where it said high airport charges make it more profitable to ground aircraft rather than fly them through the winter. Its shares were trading at €2.86.

Analysts reported strong trading volumes in DCC shares today which have risen over 6 per cent to €15.90. Also enjoying a strong day was food group Greencore which has seen an 8 per cent rise in its shares to €3.29.