DUBLIN REPORT: Iseq: 2919.08 (-19.51) Settlement Date:July 28th

THE FINANCIAL sector across Europe was “decidedly flat” yesterday as investors sat on the fence waiting for the results of banking stress tests, a Dublin-based broker noted.

The stress test results did not emerge until after European exchanges had closed yesterday evening. However, both Bank of Ireland and Allied Irish Banks (AIB) broke rank from their European peers and traded upwards during the day before it was confirmed that they had passed the critical European Union hurdle.

Bank of Ireland finished up almost 2 per cent, or 1.2 cent, at 74 cent, but AIB gave up its gains to close flat at 90 cent.

Elsewhere, Aer Lingus enjoyed an uplift as a positive trading statement released just before the closing bell on Thursday was fully absorbed by the market yesterday. The carrier broke through the €1 level at one point but weakened slightly to finish at 97 cent, up about 3 per cent, or 3 cent. Volume in the stock remained strong, with 1.2 million shares changing hands.

Low-fares airline Ryanair, which has enjoyed a rally in recent weeks, came off a strong opening price of €4.05 to fall almost 3 per cent, about 12 cent, to €3.93. However one broker said the dip was just a function of “a small bit of profit-taking”.

Among the second-string stocks, Independent News & Media closed the week on a positive note, moving up by 2 per cent, or 1.4 cent, to just over 70 cent.

Bookmaker Paddy Power traded quite well initially, hitting €27.30 at one point. However the stock then did an about-turn and finished down 16.5 cent at €26.94.

Elsewhere CRH slipped by 13 cent to just under €16.21.

Overall the Iseq index was left behind yesterday, shedding about 20 points to 2,918.08 while major European indexes continued to rally.