Strong take-up of rights issue gives financial sector a boost

DUBLIN REPORT: Iseq:3,017.17 (+92.00) Settlement Date:June 14th

IT WAS a positive day for the Dublin market with the Iseq gaining 3 per cent to close at 3,017.

The robust performance was in line with European markets although Dublin outperformed its European peers, bolstered by a strong performance by financial stocks.

The announcement by Bank of Ireland that its right issue was taken up by 94.6 per cent of shareholders raising approximately €1.63 billion gave a boost to the market. Bank of Ireland gained 2 per cent to close at 78 cent.

AIB advanced by just under 6 per cent to €0.93. Irish Life & Permanent, which has seen its share price suffer of late, edged a half a per cent higher to close at €1.67.

Irish Continental Group added five cent to close at €15.20 after the ferry operator reported an 11 per cent rise in passenger numbers as it benefited from the closure of Irish airspace due to the recent volcanic ash cloud.

Software firm Norkom Technologies lost just under 7 per cent despite posting strong full-year results for 2010, including a 3 per cent rise in revenue to €49.3 million in the year ended March 31st 2010.

Agri-food business Aryzta built on the gains it enjoyed in the previous session as investors welcomed the announcement of the company’s $1 billion (€834 million)acquisition plan announced on Tuesday. The stock rose by almost 7 per cent to finish the day at €30.85. Origin, which is majority owned by Aryzta, only managed to finish the day flat despite its positive trading update on Tuesday.

Pharmaceutical company Elan gained 6 per cent on the day to finish at €4.35 ahead of an FDA meeting today at which rival Novaris AG ’s multiple sclerosis drug is expected to be discussed.

Yesterday saw a strong performance by almost all the mainstays of the index.