Bank shares lead bounce back after two days of gloom

Iseq: 4,499.96 (+98.95) Settlement date: August 19thTHERE WAS a reversal of fortunes on the Iseq index yesterday, as Irish shares bounced out of their two-day spell of misery and gloom.

The major banking stocks all rebounded after Wednesday's heavy losses.

Although some brokers downgraded their earnings estimates for Anglo Irish Bank following yesterday's trading update, the stock was the joint highest climber of the day, rising 7.35 per cent to €6.28, a gain of 43 cent.

Bank of Ireland also reversed its Wednesday losses by gaining 5.7 per cent, closing up 32 cent at €6.04. AIB rose 2.6 per cent to €8.75, having made a more modest slip than the other banks the previous day.

However Irish Life Permanent only managed to claw back 2.5 per cent of Wednesday's 8 per cent slide, finishing the trading session up 14 cent at €5.80.

Building materials group CRH rose 1.3 per cent yesterday, closing up 23 cent at €18.16.

The biggest faller of the day was paper and packaging group Smurfit Kappa, which had a terrible day, dropping 11 per cent to €4.05. The share price suffered a loss of 50 cent amid concerns about high inventories in its sector. However, volume in the stock was unspectacular.

Kingspan's share price also failed to recover any its 6 per cent loss on Wednesday and it closed down 13 cent at €6.99, a loss of 1.9 per cent.

On a more positive note, Elan continued to make gains and closed up 7.35 per cent at €7.60, adding 52 cent. Earlier this week it was announced that the firm had received first-round bids for its drug technology unit EDT.

The stock was also subject to some positive comment from Dublin broker Goodbody.

Fyffes slid two cent to 51 cent, a fall of 4.6 per cent, but on a low volume of shares trading.