A day of mixed fortunes for beleaguered financials

DUBLIN REPORT:IT WAS a day of decidedly mixed fortunes for Ireland's beleaguered financials yesterday.

AIB

recovered from an early drubbing to post a 20 per cent gain on the session in strong volume. The bank opened sharply lower, touching 41 cent just after 8:30am before triggering buying interest. For the rest of the session it gained ground in trading of significant volume, hitting 71 cent towards the end of the day before settling back to close on 66 cent, up 11 cent.

After suffering a similar early decline, touching 30 cent in early trade, Bank of Ireland's recovery was more modest once it reached its overnight level. Having rallied to 41 cent, the stock eased to close unchanged on 37.5 cent.

Early efforts by Irish Life & Permanentto rally from its trough failed to see it break back through its overnight close. Bearish sentiment, alongside two adverse rating reports from Moody's and Fitch, dragged it down to €1.26 at the close, 18.6 cent or 12.9 per cent weaker.

Traders said the main feature of trading in the financials was that it was now led by retail investors, with most institutions having either sold out or staying away from the market.

Elsewhere, the main corporate news was the decidedly downbeat trading statement from United Drugat its annual meeting, which triggered a series of downgrades and slashed 21.4 per cent of its market value. The drug supplier closed on €1.91, off 52 cent.

CRHslipped 4.8 per cent as European construction indices suffered and on the back of worries about eastern Europe, where it has significant presence.

C&Cbucked the trend, adding almost a cent to 89.5 cent, but traders noted liquidity problems in the market meant relatively small orders were having a disproportionate impact on the movement in prices.

Settlement date: February 20th