Iseq makes modest gains

Irish financials shook off recent jitters to recover some of the losses incurred yesterday.

By 1.15pm AIB had gained 18.3 per cent to €1.22. The rise came after shares in the bank dipped under the €1 mark in yesterday’s session, following comments on Sunday by Central Bank governor Patrick Honohan that the State may take a bigger share in Irish banks.

Bank of Ireland also gained some ground, rising 12.5 per cent to €1.36. The stock had yesterday rebounded from early lows to add more than 3 per cent to finish at almost €1.22.

Irish Life and Permanent was up 2.6 per cent to €3.12.

A Government-commissioned report by accountancy firm Mazars disputed the level of loan refusals to small and medium-sized companies reported by five banks, claiming refusals may be almost a third higher.

Davy Stockbrokers described the deterioration in SME credit quality as "stark".

Aer Lingus rose 3.8 per cent to 54 cent, while rival Ryanair was trading 0.5 per cent up at €3.39. This follows yesterday's gains of more than 3 per cent as investors sought to buy in to the no-frills airline.

Shares in C&C, meanwhile, rose 1.1 per cent to €2.85.

Construction stocks were also performing well on the market this afternoon, with CRH rising 2.5 per cent to €19.42, while Kingspan added 2.4 per cent, or 14 cent, to €5.90. Grafton, meanwhile, added 1.6 per cent to €2.94.