DUBLIN REPORT: Iseq:3,096.16 (-19.04) Settlement date:September 3rd
INVESTORS’ FEARS over the Government’s Nama proposals sparked plenty of volatility in the banks yesterday, dragging down the overall market. The banks attracted most interest, but much of it was from sellers.
Dealers said they were either taking profits, or were retail buyers who feel that it is time to get out in light of speculation over what the Government’s rescue plans, centred on Nama.
Brokers said that about nine million shares were traded in both AIB and Bank of Ireland, a large amount, particularly given that London was closed for yesterday’s August holiday in Britain.
Bank of Irelandclosed down almost 8 per cent at €2.50 while AIBwas down almost 5 per cent at €2.67.
The story was different for their rival on the high streets, Irish Life & Permanent,which added 3.26 per cent to close at €4.75.
Brokers say that the markets view that bank as a safer option than the other two as it has no direct exposure to the commercial property and development loans.
The market's biggest company, CRHis expected to join the benchmark EuroStoxx 50 index tonight, making it one of Europe's top 50 shares. Such a move will boost demand for its shares as investors who track the index will have to include the group in their portfolios. However, the group was weak early yesterday, and actually dipped 3 per cent to €17.05.
It picked up over the rest of the day to add 30 cent or 1.705 per cent to close at €17.90. CRH accounts for around 30 per cent of the Iseq index.
Housebuilder McInerneydropped 2 cent or 8 per cent to 23 cent after reporting that it has taken another writedown on the value of its land holdings. Kenmaregained one cent to reach 29 cent on the back of news that it is on schedule to begin full production at its African titanium mine.
