Market Report:The Iseq index ended the day morere or less unchanged yestday after earlier falling more than 1.5 per cent.
The catalyst for the reversal of fortune was the European Central Bank's decision to leave interest rates unchanged at 4 per cent, a move that will have saved borrowers some €35 a month on an average mortgage of about €250,000.
As a result, Irish Life & Permanent, the bank with the greatest exposure to the Irish mortgage market, was the biggest gainer amongst the financials. Its shares rose 2.2 per cent, or 39 cent, to end the day at €17.76 on decent volume. The other banks were mixed, with Anglo gaining 1.8 per cent, to close at €14.05, while AIB and Bank of Ireland were both losers. AIB closed down 5 cent, at €18.20, while Bank of Ireland lost 4 cent, to end the day at €13.23. Both banks closed well off their daily lows.
The real star of the market was IEX member Siteserv. Shares in the construction services company rose 13 per cent, or 9 cent, to 78 cent after it said it had bought utilities services provider, Sierra Communications, for €46 million. Dealers said the price seemed reasonable for an acquisition that was nearly as big as the company itself.
IFG also put in a good performance, adding 3 per cent, or 6 cent, to close at €2.08. The financial services provider reported a 34 per cent increase in adjusted operating profits and said its subprime mortgage business was performing strongly.
Horizon Technology was also a gainer on the back of positive interim results. The shares closed up 2.6 per cent, or almost 3 cent, at 98 cent.
