AIB and C&C rise as overall market drifts lower

MARKET REPORT:THE IRISH stock market underperformed its European peers yesterday.

After treading water for most of the session, the Iseq drifted at the close of business, ending down 0.18 per cent at 2,170.08.

In London, the benchmark FTSE-100 index was virtually unchanged, adding 11.54 points to close at 4018.37. After dipping earlier in the day, the Dow Jones Stoxx 600, which measures the leading stocks in 18 western European markets, increased 0.1 per cent to 183.50.

AIB was responsible for the key Irish corporate news when it announced that it was writing off €850 million, €500 million of which would be against loans to property developers. The bank said earnings would fall as a result.

Its shares closed up 2.4 per cent at 64.5 cent, despite dealers observing that its ultimate loan impairments could be far worse.

Volumes in the bank’s shares were strong, with more than 12 million units changing hands in Dublin.

Bank of Ireland, meanwhile, was down almost 4 per cent at 35.4 cent. Just over 5.5 million of the bank’s shares were traded in Dublin.

Building materials giant CRH, the biggest component of the index, was slightly weaker throughout the day, trading at levels between €16.30 and €16.40, although it went as low as €16.20 at one point before closing 0.79 per cent down at €16.33.

Dealers said the group’s sector had been sliding throughout the week.

Cider maker CC announced that it planned to cut 121 jobs. Despite issuing a downbeat bulletin about its prospects, it was one of the better performers.

The shares were up almost 9 per cent at €1. Dealers said investors believed that the company’s management was seeking to get earnings per share moving again.

Settlement date: February 24th