DUBLIN REPORT: Iseq:2,934.23 (+27.89) Settlement date:January 17th
IRISH FINANCIAL stocks benefited from yesterday’s banking rally which was driven by Portugal’s healthy bond sale.
Bank of Ireland led the winners on the Irish stock market, rising 7.5 per cent, or 2.5 cent, to 36 cents. Irish Life & Permanent added more than 2 per cent, or two cent, to finish at 88 cents.
One Dublin broker explained that the success of the Portuguese bond auction yesterday was perceived as being positive for banks, as were EU monetary affairs commissioner Ollie Rehn’s comments about reinforcing the lending capacity of the European Financial Stability Facility.
“The whole lot is pretty positive,” the broker said. “Europe is answering the market’s demand for a larger backstop for the capital needs of the banks.”
However, despite yesterday’s uplift in banking stocks, there was no “sense of finality” yet and volatility was expected to continue, he added.
Building materials giant CRH finished up 1 per cent, or 14.5 cent, at just below €14.65, but it lagged peers such as Saint-Gobain which was lifted by positive broker comments.
Although airlines in general were flat to slightly positive, Ryanair was a touch weaker, closing 1.6 cent off at €3.93.
Smurfit Kappa, which has been strong in recent sessions, traded up again. It touched a daily high of €7.95 at one point, and closed just below €7.92, up more than 2 per cent. Brokers said recent comments regarding further consolidation in the paper and packaging sector may have contributed to Smurfit’s positive performance.
C&C traded positively before its interim management statement which is due out tomorrow. The stock rose almost 1 per cent, or 3.4 cents, to €3.55. There was good interest also in Irish Continental Group, which was more than 2 per cent ahead at €16.30.
