BoI falls on slower earnings growth

Market Report:Bank of Ireland dominated events on the Iseq yesterday, after issuing an interim management statement as the market opened.

The reaction to news of slower earnings growth was initially strongly negative, with the bank's shares losing 3 per cent. Declines moderated as the day progressed, however, with shares closing 13.3 cent, or 1.41 per cent, lower at €9.307.

A boost of sorts came from share purchases by chief executive Brian Goggin and governor Richard Burrows, who spent €465,000 and €232,950 respectively on stock.

The other financials had a harder time, with dealers suggesting hits to AIB and Anglo Irish were due to Bank of Ireland's cautious comments on business banking. AIB finished 55.2 cent, or 4 per cent, lower at €13.10, while Anglo Irish Bank shed 41.5 cent, or 4.37 per cent, to close at €9.085. An update from AIB is due next Wednesday.

Irish Life & Permanent dropped by 13.7 cent to €10.25.

The other newsmaker on the day was Waterford Wedgwood, which forecast a loss for the year and said it was cutting jobs in Germany. Shares dropped by 0.2 cent to 1.7 cent.

Elsewhere, most stocks ticked lower, with an exception coming in Kerry, where shares rose by 70 cent to €19.45. Elsewhere Greencore was down two cent at €4.36 and IAWS fell by 20 cent to €13.10. Glanbia also lost 20 cent, closing at €4.74.

CRH had a positive session, with its hares gaining 54.4 cent to reach €25.754.

Grafton fell by 7 cent to €5.62, while Kingspan added 14 cent to finish at €8.84. Smurfit Kappa was also in good shape, rising 18 cent to €8.867 after Davy reflected on this week's results and said a price of €12 could be justified.