Iseq: 2,641.48 (-44.66) Settlement date: January 15th

THE IRISH Stock Exchange lost some of the ground it had recovered last week, with the Iseq overall index slipping by close to 45 points to 2,641.48.

However, the recent rally in the banking sector, which was fuelled by rumours of hedge funds closing out on short positions, continued yesterday.

Anglo Irish Bank gained nearly 13 per cent, or four cent, on the day to close at just under 32 cent.

AIB’s share price climbed by 14 cent to €2.16, although the volume of shares traded was thin.

According to traders, most of this activity was due to speculative value plays by small retail investors, as opposed to institutional investors.

Irish Life and Permanent enjoyed a lift of 8.5 per cent, or 21 cent, bringing it to €2.68.

CRH was one of the big fallers of the day, and was down by in excess of 5 per cent, or €1.11, finishing the day at €18.89.

One trader said that this was due to “fears over whether Obama can turn things around in the US with his stimulus package”, as CRH has considerable exposure to the US market.

Elsewhere, the market responded well to Aer Lingus chief executive Dermot Mannion’s announcement that he had agreed to cancel his recently and controversially renegotiated lucractive severance package.

The airline’s share price rose by three cent to €1.56 on the news.

Ryanair also had a good day, rising by almost 2 per cent, or six cent, to €3.22.

Drinks group company CC traded up by 2 per cent, or almost three cent, to €1.41 in advance of the new management team’s trading statement due out on Friday.

Power Power drifted downwards by almost 28 cent to €12.90 yesterday, due to concerns for the Irish racing industry and pressure on consumer spending.