US move triggers modest rebound

MARKET REPORT:THE IRISH market staged a slight rebound yesterday, as the US government's intervention to save Freddie Mac and Fannie Mae, combined with the announcement of a bid for UK bank Alliance Leicester, bolstered financial stocks.

The Iseq closed up 84.3 points, or by 1.9 per cent, and it recovered some of its losses from last Friday. Trading volumes, however, were below average, with volumes in most stocks, apart from financials, at around 70-80 per cent of the usual amounts traded for this time of year.

Irish Life Permanent performed the strongest out of the financials and the strongest on the day, up by 8.7 per cent or by 37 cents to €4.67.

Despite poor results in US financial institution MT Bank, in which AIB holds a 24 per cent stake, and a downgrade from Fitch Ratings, AIB performed strongly on the day, closing up by 3.4 per cent, or 25 cents, to €7.60.

Amidst speculation of stake building by a value investor in the bank, Bank of Ireland also performed well, closing up by 3.7 per cent or by 17 cents on Friday, to €4.82.

Less fortunate, however, was Anglo Irish Bank, which closed down by 1.4 per cent, or by 6 cents to €4.37.

Despite a poor trading statement last week, CC Group performed very strongly, closing the day up 7.2 per cent to €2.60.

CRH had a strong day, closing up 6.1 per cent, or by 89 cents, to €15.40, while Ryanair also had a positive day, and moved up by 4.6 per cent, or by 12 cents to €2.65.

After a dismal day last Friday, Greencore closed the day up almost 6 per cent, or 8 cents, to €1.51, as company management made a share purchase.

Kingspan was one of the worst performers on the day, down by 4.3 per cent or by 25 cents, to €5.63.