DUBLIN REPORT: Iseq: 2,802.62 (-52.21) Settlement Date: August 24th

THE DEMISE of the Bank of Scotland Ireland (BoSI) did nothing to bolster the fortunes of the listed Irish banking sector yesterday. Investors largely took the decision as a vote of no confidence in the short-term prospects for a recovery in the sector.

Irish Life & Permanent fared worst of the financials on the day, slipping almost 10 cent, or 6 per cent, to close on €1.5574.

Bank of Ireland was the most actively traded stock in the market, albeit in lighter than usual volumes. Having started the day in positive territory, it went into reverse as news emerged of the decision on BOSI and ended the day on a session low of 77 cent, 3.5 cent or 4.4 per cent weaker. AIB fared better relatively, slipping 2.25 cent or 2.6 per cent to just over 82 cent.

Overall, the market performed broadly in line with its European peers, all of which gave up some ground on the day. However, volumes were light as the holiday season moves towards its conclusion.

Few of the major components of the index made any group and those that did saw precious little volume. Ryanair advanced almost two cent to €3.823 on the day the Ryan family’s fortunes were enhanced by a sale of shares in Asian low cost airline Tiger. Aer Lingus saw some interest but closed unchanged on 93 cent.

Index heavyweight CRH was out of favour, dropping 46.5 cent, or over 3 per cent, to €14.54 as the US Congressional Budget Office warned about the medium-term prospects for the US economy.

Independent News & Media dipped two cent to 66 cent in the wake of results from Australian group APN, in which it has a 32 per cent stake, that came in below market expectations.

Others to lose ground slightly were food groups Kerry, Greencore and Glanbia, and materials groups Kingspan and Grafton.