Shares in the Irish market rose modestly this afternoon as a slew of trading statements drove some stocks higher, but weighed on others.
By 1.07pm, the Iseq was up 24.12 points to 2,923.93, boosted by building stocks and some financials.
Shares in AIB were up 3.6 per cent to €1.81 by 12.30pm after recovering from a mid-morning dip. The financial group reported this morning that loan impairment charges would be higher than previously expected, at €5.3 billion instead of a previously guided €4.3 billion. However, the bank said excluding the bad debt charges, it was expecting to post operating profit of €2 billion for the year.
Traders said the statement was mixed, with some positives to be taken from the operating business.
"AIB's interim management statement highlighted the difficult operating environment in which the group is operating," NCB Research wrote in a note. "Its full year impairment guidance is a bit worse than our forecast but its pre-provision profits are better than our estimates. The non-Nama related loans are also showing signs of stabilisation. Core tier 1 capital ratios are running better than expected, largely due to a reduction in risk weighted assets."
The bank also ended speculation over its managing director with the announcement that senior executive Colm Doherty would step into the role, at the Government approved salary of €500,000. Minister for Finance Brian Lenihan yesterday confirmed that the bank would not be allowed to breach the cap set for the salaries of top bankers.
Bank of Ireland meanwhile was also gaining, rising 3 per cent to €1.70, with evidence that the shares were still climbing.
At the opposite end of the market, Irish Life and Permanent was down 5.7 per cent to €3.59, after hitting earlier losses of as much as 7.8 per cent. The bank yesterday issued an interim statement warning that its three-year forecast for loan losses would be higher than expected, prompting shares to slump 13.5 per cent on the Iseq. Net interest margin would be under pressure, it said, as the bank reduced its reliance on European Central Bank (ECB) funding.
A weak interim management statement from Glanbia caused shares to fall 3.4 per cent, or 10 cent, in the morning's trade, slipping to €2.77. The food conglomerate warned this morning that weak consumer sentiment was driving competition in the market, and said its earnings would be at the lower end of the scale for the year.
United Drug, meanwhile, saw its share price soar after it reported revenues rose 5 per cent on a constant currency basis for 2009. The market took positives from its strong performance in the current market, with shares adding 4.5 per cent to €2.32 by 12.30pm. However, the firm warned it had been hit by the weakening value of sterling against the euro, which cost it some €5 million in profits.
CRH gained during the session, rising 1.3 per cent to €17.38. Results from building group Wolseley revealed that trading in the three months to October 31st was in line with expectations. The results indicated that although the commercial and industrial markets remained weak, there were signs of stabilising trends in residential demand. Traders said CRH should gain from strengthening residential market trends in North America.
Grafton also lifted during the session, with shares adding 3.7 per cent to €3.28, while Kingspan rose to €5.65, a 1.9 per cent gain.
The rise in the Iseq was also seen around Europe. UK's FTSE 100 index was up 0.4 per cent, Germany's DAX index up 0.8 per cent, and France's CAC 40 up 0.7 per cent led by banks, oil producers and miners.
