Banking shares in the spotlight as Iseq rebounds

DUBLIN REPORT:Iseq: 3,123.49 (+19.50) Settlement date: March 24th

AFTER FALLING back in the previous session, the Dublin market rebounded yesterday to end the week comfortably in the red, outperforming its European peers.

Banking stocks were the main talking point yesterday ahead of anticipated movement on National Asset Management Agency (Nama) transfers and bank capitalisations in the next 10 days.

Analysts also pointed to a possible "softening" of approach to bank capitalisation on the part of the new Financial Regulator, after he indicated in an interview with The Irish Timesthat "transition arrangements" would be considered in moving the banks to capital thresholds required under Basel III rules.

There was decent investor activity in both the main banks. AIB added 2.6 per cent. Bank of Ireland spent much of the session in positive territory, although it fell off towards the end of the day to finish 1 per cent lower at €1.57.

Irish Life Permanent, which is not involved in the Nama process, shed 3.2 per cent to €3.00, with analysts saying the stock was attracting scant investor interest as the focus shifted to the Nama-connected banks and as the possibility of a “third force”’ in banking appeared to retreat in the list of priorities.

There were decent volumes in Independent News Media ahead of its 2009 preliminary results next Wednesday and amid expectations that a move on the sale of its London titles is imminent.

Lifting the overall index, CRH added 1.6 per cent to €18.88 on good volume following positive sector indicators from the US during the week.

Aer Lingus slipped by just under a per cent as talks continued at the Labour Relations Commission.

Rival Ryanair – the second-largest constituent on the index – finished pretty much flat at €3.50.