Market Report:The Irish market failed to sustain the strong gains made in early-morning trading when Iseq surged by nearly 2 per cent on the back of overnight gains on Wall Street and the news that Bank of America made a €2 billion investment in the largest mortgage lender in the US, Countrywide Financial.
However, that sentiment failed to follow through in the rest of the day and continuing concerns over credit problems in the US helped check and largely reverse the morning advance.
Nevertheless, there was none of the frenetic volatility of last week, and the Iseq finished in positive territory. It was up 41.18 points, or 0.5 per cent, at 8,351.71.
Traders also said there was evidence of profit taking in the sectors that have rallied in the past five days, and there are still latent concerns over a possible interest rate hike by the ECB.
The financials paced the market. AIB closed 8 cent stronger at €19.43, while Bank of Ireland tacked on 5 cent to finish at €13.50. Irish Life & Permanent was 15 cent stronger at €13.50. However, Anglo Irish Bank bucked the trend and eased back 5 cent to €13.95.
It was a mixed bag among the construction stocks. CRH dropped 10 cent to €30.60, while Grafton was 15 cent weaker at €9.65. However, Kingspan put in a good day, picking up 43 cent, or 2.6 per cent, to €17.
One bigger loser was Aer Lingus, down 8 cent, or 3.23 per cent, though volumes were light.
Drinks group C&C also had a poor day, losing 15 cent, or 2.66 per cent, to close at €5.50, reflecting market nervousness ahead of a trading update due at the end of August.
