Iseq posts solid day as financials buffeted

The Irish stock market produced a solid performance today despite a lacklustre return in the financial sector, closing up 1

The Irish stock market produced a solid performance today despite a lacklustre return in the financial sector, closing up 1.73 per cent at 2,413.

Financial stocks were hit by continuing speculation about the Government involvement in the banks with the creation of the National Asset Management Agency (Nama) announced in the emergency Budget, according to brokers today.

Allied Irish Banks was one of the market's worse performers, down 6.25 per cent to close at 1.05. Bank of Ireland started the day well, climbing 5.9 per cent, but closed at 0.86, a minor improvement of 2.3 per cent since trading closed for the Easter break.

Irish Life and Permanent had the best financial performance after rising 11.9 per cent to close at 2.1.

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Brokers say this was primarily because Irish Life and Permanent lies "outside of the Nama net".

Nama aims to clean up the banking system and could potentially transfer €80 billion to €90 billion of property related assets into state ownership and free up banks to lend credit.

Meanwhile, cyclical stocks were on the move today with building material stocks and building merchants producing a strong day trading.

CRH bucked this trend lagging its peer group, posting a modest rise of 0.35 per cent after peaking in the morning at 17.44 to finish at 17.

Brokers pointed to US house prices as the reason for the cyclical surge, which they say appear to have reached the bottom.

Airlines also had a strong day boosted by a reduction in oil prices to the $50 mark. Ryanair increased 2.6 per cent to reach 3.15 today, while Aer Lingus had its best performance in months climbing 7.2 per cent to reach 0.74.

Elsewhere, Independent News & Media also had an excellent day rising 8.5 per cent in the morning's trading to eventually close up 5.71 per cent at 0.18.