Rescue plan pushes bank shares up except Anglo

DUBLIN REPORT: Iseq: 2,372.52 (+3.08) Settlement date: December 29thA CAUTIOUS welcome to the Government's plan to inject up to €7.5 billion into the Republic's three main banks resulted in the Dublin market outperforming its European peers yesterday.

The overall Iseq index of Irish shares was up 3.08 points or 0.13 per cent at 2,372.52 ahead of today's close.

The financial index was up 79.76 points or 8.9 per cent at 977.24, a result of the fact that the banks were the focus of most of the action today.

In contrast, Europe's Dow Jones Stoxx 600 was down 1.5 percent to 193.59 by 4.37 pm, while in London, the FTSE 100 index closed down 37.77 points at 4,249.16.

However, the Government's effective takeover of 75 per cent of Anglo Irish Bankdid not stop its shares from continuing their plunge. The price was down close to 27 per cent at one point, but ended the day 14.3 per cent down at 30 cent.

Dealers said investors just "don't want to know about Anglo".

Bank of Irelandput in the strongest performance, closing 32 per cent up at 89 cent.

Irish Life and Permanent, which is not included in the capitalisation plan and has less exposure to commercial property loans than the others, was up 12.5 per cent at €1.63. AIBwas up 1.2 per cent at €1.67.

Dealers said volumes were light, and said that investors treaded warily on the basis that it was not clear yet if the banks themselves would issue new stock to raise more cash.

Elsewhere, building materials giant CRHdropped 2 per cent to €17.83 as Citibank recommended the stock as a "sell" and set a new target price for the company of €15.

Investors put some festive fizz into cider maker C&C, which gained 6.2 per cent yesterday to close at €1.455.