Bank shares weigh on Iseq

The Irish index of shares dipped this afternoon as weak bank shares weighed heavily.

By 2.52pm, the Iseq was down 44.90 points to 3,054.78.

Bank of Ireland was down 7 per cent to €1.52 by 2.40pm, as shareholders met in Dublin to vote on proposals to particpate in the national Asset Management Agency.

The bank said today it expects to receive a 30 per cent discount on €16 billion of loans it transfers to Nama. It is urging shareholders to back the plan to transfer toxic debt to the State's "bad bank", saying it would bring "greater certainty" to its remaining loan portfolio.

AIB also slipped in the day's trade, falling 9.8 per cent to €1.46. Its shareholders voted on December in favour of taking part in Nama.

Aer Lingus saw its shares fall 2.9 per cent by 2.40pm to 66 cent after the Labour Court recommended pay cuts for pilots and added pension contributions. Redundancies among the highest earning pilots were also suggested, with up to 50 job cuts proposed.

Rival Ryanair was down less than 1 per cent to €3.34, while index heavyweight CRH was down 1.1 per cent to €18.24.

Smurfit Kappa Group saw its shares rise just under 1 per cent to €6.69. Earlier today, brokers said they believed a positive pricing cycle would benefit the company, boosted by by a likely price rise in old corrugated cardboard (OCC).