Financials lift Dublin market

The Dublin market gained slightly today, as other European markets edged lower on a decline in banking stocks.

By 12.32pm, the Iseq was up 11.84 points to 2,861.47, lifted by gains in financials and building stocks.

AIB rose 1.7 per cent to €1.54 by 12.30pm, following yesterday's announcement that it had suspended payment on some securities at the request of the European Commission while it examined the bank's restructuring plan. The move was not a surprise to traders, as the Commission had set precedent with other banks.

Dublin traders noted that the Commission yesterday said it may be possible to adjust the period of coupon restrictions if it would help raise private capital and reduce state aid.

After a flat day yesterday, Bank of Ireland rose 3 per cent today to €1.67. Irish Life and Permanent, which came under some pressure on yesterday's market, rose 2.1 per cent this afternoon to €3.25.

Aer Lingus shares also gained, rising 3 per cent to 54 cent. Reports today indicated that although talks on the airline's cost-cutting plan had ended without agreement yesterday, the two sides had narrowed the gap somewhat.

Trade union Impact said it is to meet with the company later today to try to agree a deal. Aer Lingus warned yesterday that more than 1,000 workers could be made redundant over the coming months if the talks failed, with the board agreeing a strategy that included grounding aircraft in the new year and cutting loss-making routes. The board is to meet again on Friday to decide the scale of the cuts.

Ryanair fell 0.3 per cent to €2.80.

After a strong performance yesterday, index bellweather CRH contiued to show some gains, rising marginally by 0.3 per cent to €17.39. The stock was boosted by positive construction figures from the US yesterday afternoon.

Shares in DCC slipped 1.5 per cent to €18.83, while food group Kerry also saw some weakness in its stock, losing 2.3 per cent to €20.01.