Anglo results drag banks down as others perform better

DUBLIN REPORT Iseq: 2,479.56 (-36.43) Settlement date: December 8th:IT WAS another wretched day for bank stocks in Dublin yesterday, as disappointing results from Anglo Irish Bank led financials in a downward spiral. Overall, the Iseq fared better, with rebounding food stocks helping the index to close down just 1.5 per cent.

Anglo, which was the first European bank to announce full-year results since the collapse of Lehman Brothers in September, reported a 37 per cent fall in pre-tax profits to €784 million, while loan losses were worse than previously forecast and no clarity was given on recapitalisation plans. Anglo Irish lost 27 cent, or 28.7 per cent, to fall to a new low for this year of €0.67. Its market capitalisation is now just €509.2 million.

Other banks fell back sharply on the back of Anglo's disappointing results, with Bank of Ireland giving up the most. It lost 18 cent, or 14.2 per cent, to close at €1.09.

Irish Life Permanent also struggled, losing 19 cent, or 11.7 per cent, to finish down at €1.44, while AIB gave up 14 cent, or 6 per cent, to close down at €2.19.

Other stocks performed better. Ryanair bounced on the back of its passenger figures for November, which showed that it carried 11 per cent more passengers than in the same month last year. Its share price closed up by 14 cent, or 4.9 per cent, at €2.90.

It was another good day for food group Aryzta, which continues to make up lost ground. It advanced by 81 cent, or 3.5 per cent, to climb to €24.31, while Kerry also performed strongly, up 37 cent, or 2.2 per cent, to €17.10.

Irish Continental Group jumped by €1.20, or 8.3 per cent, to €1560, following speculation that ICG chief executive Eamonn Rothwell and the Philip Lynch-led Moonduster consortium look set to launch a joint bid to acquire the ferry company.

Construction stock CRH was largely flat, losing 4 cent, or 0.2 per cent, to finish at €17.20.