DUBLIN REPORT: Iseq:2,655.30 (-11.47) Settlement date:December 2nd
ALL EYES WERE on financial stocks yesterday, as investors awaited the response of the markets to Sunday’s announcement of the details of Ireland’s bailout package and particularly, its statement as regards the banks.
The provision of €35 billion for the banking sector, and the commitment to provide an immediate €10 billion to shore up the banks, lifted bank stocks from early morning. Analysts focused particularly on the implications of the new minimum capital requirements for Ireland’s financial institutions.
Bank of Ireland closed up 16 per cent at 31 cents, while Irish Life &Permanent climbed 59 per cent to 82 cents after the group said that its 12 per cent capital requirement would have a modest impact on the group and will be met from its own resources.
Analysts in Dublin said the capital requirement for both banks was less than had been expected by the market, serving to lift stocks. AIB rose by a more modest 3.8 per cent to 36 cents.
Elsewhere, baking company Aryzta was one of the most active stocks, due to a positive trading update which showed that the rate of revenue decline had slowed significantly in the first quarter of its 2011 financial year. The Swiss company, which has its secondary listing in Dublin, gained 6.6 per cent to €32.29.
Norkom was also the source of much investor interest yesterday following the confirmation by the small-cap company that it is the subject of takeover discussions. The stock rose almost 15 per cent to €1.25. TVC Holdings, which has an equity stake of 26.9 per cent in the company, rose 14 per cent to 57 cents.
Meanwhile CRH lost 3.5 per cent or 50 cent yesterday, closing at €13.60. The underperformance of the Iseq’s heavyweight served to push the overall index into the red, with the Iseq closing off 11 points at 2,655.
