Market closes marginally up as AIB outperforms

Market Report: Markets closed marginally up yesterday with news of Banco Santander's approach for Britain's sixth largest lender Abbey National lifting the financial stocks, albeit in relatively thin volume.

AIB, in particular, did well despite the publication of the first of three reports into a series of mis-steps at the bank. Dealers attributed its outperformance to relief that the €50 million set aside by the bank would be sufficient to cover all costs involved, and at what traders took as a signal that the next chief executive of the bank would be an external appointment untainted by the current woes.

The bank closed 19 cents or 1.56 per cent stronger on €12.39.

Having opened lower and climbed 17 cents by early afternoon, Bank of Ireland closed unchanged on €10.68. Anglo Irish was 12 cents firmer on €12.95. Irish Life & Permanent, seen by many as the most likely takeover target of the listed banks, rose four cents to €12.30, having hit €12.42 earlier in the session on the back of a ratings upgrade from Fitch.

Elsewhere, McInerney saw unusually heavy trading, with almost 2.4 million shares changing hands.

Traders said there was buying interest from several institutions which expect upgrades on the back of rival housebulder Abbey's good recent results. McInerney closed five cents higher on€5.35.

Ryanair stock rose initially on news of its major investment in aircraft and routes from Luton airport, but it weakened later amid concerns over its legal spat with the British Airports Authority (BAA) at London's Stansted Airport.

Elan recovered some ground after shedding 12 per cent on Thursday. IT gained 29 cents yesterday to close on €17.79.

Independent News & Media continued to trade near its 12-month low, closing unchanged on €1.85. Dealers said the group had underperformed the European media sector since the start of the year.

Settlement Day: July 28th