DUBLIN REPORT: Iseq:3,367.54 (+21.40) Settlement date:October 15th
THE SHOW of support for the Programme for Government from the Green Party on Saturday to the establishment of Nama came as a relief to the Irish market yesterday and meant that a sharp drop in bank stocks was averted.
The reaction of Irish bank stocks to this milestone was more muted than might have been expected, but this was attributed to the resilience of the shares on Friday. Volumes were relatively light but traders observed that the financials would probably have suffered a steep fall had the junior coalition party opposed Nama.
Both Bank of Irelandand AIBperformed strongly in early morning trade, marking up in line with the rest of Europe, but both stocks drifted back towards the close.
AIBfinished up 2 cent at €3.06, while Bank of Irelandwas more or less flat on the day at just under €3.15.
Irish Life Permanent, which is not directly involved with Nama, was off about 2 per cent at €5.58.
Elsewhere former State carrier Aer Lingusgained altitude, soaring almost 9 per cent to 75 cents, with most of the gains made during the afternoon session.
Paper and packaging group Smurfit Kappaalso had a decent day, moving up by more than 2.5 per cent – or 15 cents – to €5.95. The stock has now gained 50 cents since the middle of last week, bringing it back to levels not seen for almost a month.
Following a decent run, cider manufacturer C&Cwas off yesterday, shedding almost 3.5 per cent to finish at €2.66.
Meanwhile, CRHhelped to buoy up the market, gaining 47 cents which brought it to just under €20.
Overall, it was a quiet day on the Dublin market, which was believed to be due to the Columbus Day holiday in the US. The Iseq lagged behind its European peers yesterday, gaining just over half a per cent to close at 3,367.54.
