DUBLIN REPORT: Iseq: 3497.17 (+36.68) Settlement date: April 29thAFTER A weak start, Bank of Ireland stormed ahead as investors digested the details of its €3.4 billion capital raising plan.
The stock stumbled in early trade, falling to €1.68, but recovered well as investors got on board over the course of the day. By the closing bell, Bank of Ireland was ahead by more than 6 per cent, or 11 cents, at €1.91.
This strong performance had a positive spillover effect on AIB, which will also have to carry out a recapitalisation exercise at some point in the future. AIB added close to 4 per cent, 5.5 cents, to finish at €1.55.
Although Irish Life Permanent does not have the same capital issues as AIB and Bank of Ireland, it moved in the same direction as the two big names. The stock bounced more than 4 per cent, 13 cents, to €3.25.
Cement giant CRH added to the impressive gains recorded on Friday and broke through the €22 level yesterday. Although it had slipped back to €21.95 by the close, this still represented a daily gain of more than 2 per cent, or 45 cents. “The volume was not terribly convincing, but the price is very welcome,” a Dublin broker said.
Yesterday’s jump was driven by a broker note which was positive on the cement sector – which has been trading up well recently – and listed CRH amongst its top picks.
Independent News & Media rose yesterday by 4.3 per cent to 14.4 cent. Elsewhere, packaging group Smurfit Kappa added 2.2 per cent, 16 cents, to finish the day at €7.36. According to one broker, the stock is doing well on expectations of an improved performance in its second half, as packaging prices are rising.
In the airline sector, Ryanair was relatively quiet. The no-frills airline slipped fractionally but managed to stay above the €3.90 level. Aer Lingus was pretty much flat at about 73 cents.
