DUBLIN REPORT: Iseq:2,657.08 (–4.08) Settlement date:October 4th
IRISH BANK shares attracted heavy buyer interest on the Dublin and London markets yesterday in anticipation of an estimate from the Government today on the cost of winding down Anglo Irish Bank and a probable second announcement on the capital position of AIB.
Speculation about imminent Government guidance on AIB drove the stock up in the afternoon, with a combined 60 million shares traded over the Dublin and London markets. It closed up 10.4 per cent at 55 cent.
The buyer interest in AIB brought even greater numbers of investors to Bank of Ireland, which climbed 6.5 per cent to 57 cent on the back of 55 million shares trading in Dublin and a further 27 million in London.
Dealers were “swamped” by the interest from buyers in the two banks’ shares.
Overall the Iseq index was slightly down on the day.
CRH, the largest component stock on the index, fell 1.7 per cent to €12.13, following a subdued report from analyst Meredith Whitney on the budgets of US states. The construction company is reliant on these budgets for a significant chunk of its business.
Elsewhere, Ryanair held an investor day in London but there was no change in its guidance. It closed up 1 per cent at €3.86.
Aer Lingus continued to trade well due to more favourable market sentiment towards airlines operating in the long-haul sector. It traded as high as €1.08 before closing at €1.07, up 2.7 per cent.
Food group Greencore finished up 3.45 per cent at €1.20, as buyers circled the stock in the afternoon, while Aryzta slipped 2.5 per cent to €32.35.
The Government’s expected guidance on the banks today is a case of “the sooner, the better”, according to one dealer. “We’re navel-gazing until we know about Anglo,” he said.
