Financials on firmer ground but traders holding fire

DUBLIN REPORT: Iseq:3,404.36 (+18.69) Settlement date:September 28th

THE ISEQ finished slightly higher yesterday, as a rise in the value of bank stocks helped to offset a fall by heavyweight CRH. The construction giant slipped for the third consecutive day, after a strong rally last week.

Nerves about the US economy weighed on sentiment, as markets awaited an announcement by the Federal Reserve late yesterday at which it was expected to signal that it may be considering an exit from its stimulus strategy. Almost 50 per cent of CRH'srevenues are generated in the US and the company ended the day 8 cent lower at €19.54.

Other construction-related stocks were also down. Building materials group Graftonlost 3 cent to close at €3.67 while insulation provider Kingspanwas down 7 cent to €6.45.

Volumes traded in bank stocks were low yesterday, as investors took stock after last week’s activity post the Nama announcement.

AIBclosed almost 5 per cent higher at €3.25 while Bank of Irelandadvanced almost 3 per cent to end the day at €3.14. Irish Life and Permanentalso ended the day higher, closing up almost 3 per cent higher at €5.87.

The volume of Ryanairshares traded yesterday was much lower than usual ahead of its agm today. Nonetheless, its share price ended just over 2 per cent higher at €3.61, with traders expressing optimism that any trading update announced today would beat earlier guidance.

Independent News & Mediaadvanced 2.8 per cent after the company confirmed that its discussions with banks and bondholders about the restructuring of a €200 million debt had advanced significantly.

C & Ccontinued to attract a lot of interest, as the company's profile continued to grow, particularly in the UK. Traders reported good volumes, although the share price closed down 1 cent at €3.00.