Iseq: 2,948.25 (–4.03) Settlement date: April 8th

BIZARRE TRADING in AIB and Bank of Ireland’s US lines left Dublin brokers baffled yesterday.

AIB moved ahead by 10 cents to 33 cents in a jump that was described by one trader as “just ridiculous”, given the “guillotine” of impending stock dilution “hanging over its neck”.

“It makes no sense to me at all,” he said.

Volumes in AIB and Bank of Ireland, the two future “pillars” of the Irish banking sector, were not particularly noteworthy on the Irish stock market. The real trading took place in the ADR (American depositary receipt) lines of both names, with massive volumes of shares changing hands in the US.

In 2.5 hours of trading in the afternoon, some 12 million AIB ADRs were traded, which is equivalent to 120 million ordinary shares on the Irish market. Bank of Ireland was a similar story, with 23 million ADR shares traded, which equates to just under 100 million Irish shares.

It is believed these trades were mainly carried out by private investors, rather than institutions, but brokers struggled to see the logic behind the counterintuitive interest in the two stocks.

As a result of the heavy trading, Bank of Ireland’s share price was volatile, but it finished the day down about two cents at 32 cents.

Low-fares airline Ryanair continued to hold up well in the face of higher oil prices, trading about the €3.32 mark for much of the day. It closed off its highs at just over €3.31.

DCC shed 19 cents – less than 1 per cent – to €22.88 after HMV issued a third profit warning. DCC’s SerCom business sells entertainment products to the retail market. However, it only accounts for about 10 per cent of the group’s total operating profits.

Paddy Power came off its all-time high of €32 recorded during Monday’s session, and finished 20 cents down at €31.80.