Banks suffer as Iseq's brief rally comes to abrupt end

Iseq: 4,372.16 (-128.14) Settlement Date: August 12thBANKS TOOK a hammering as clouds returned to the Irish Stock Exchange yesterday.

Only a handful of stocks managed to make headway in another volatile day's trading as the Dublin market's two-day winning streak came to an abrupt end.

All the leaders lost ground on a day when the market received little in the way of corporate news to provide direction. Hopes for some class of a rally following the European Central Bank's announcement that it was holding rates unchanged failed to materialise.

Building materials group Kingspan, which has been one of the more solid performers of late, took the worst beating, shedding 9.1 per cent of its value (68 cent) to close at €6.80 in unexceptional trading.

Other sector heavyweights also suffered, with CRH giving up 2.4 per cent to €16.99 and Grafton drifting back under the €4 threshold to end the day at €3.915, a loss of 4.2 per cent.

Food group Kerry, which put in a strong run on Wednesday, lost all of that ground and more as it slipped to €18.60, a loss of €1.40 or 7 per cent.

CC also gave up ground, closing at €2.75, down 15.8 cent or 5.43 per cent.

All the financials were out of favour, with early advances by Anglo Irish Bank more than offset by afternoon weakness.

The bank, which has jumped 27 per cent in just two days, lost 5.3 per cent, or 34 cent, to close at €6.11.

AIB, which went ex-dividend on Wednesday, dropped 45 cent to close at €8.55, while rival Bank of Ireland finished on €5.96, a loss of 12 cent, or 1.97 per cent.

Irish Life Permanent, which has made steady gains recently, dipped 7.2 cent to €6.178.

Among those making any headway, volumes were particularly light.