Hopes for a “Santa rally” across European stock markets faded today, although the Dublin market managed to buck the trend by finishing in positive territory.
European shares fell after heavy demand by banks for cheap European Central Bank loans was seen as a bit too keen by investors, who fretted about the banks’ funding needs. Traders said the rush for almost €490 billion worth of ECB money reflected the pressure banks are under, making it unlikely they would use it to buy more of the euro zone’s risky debt.
The Iseq went against the grain, closing up 1 per cent - largely as a result of the performance of building materials group CRH. The cement-maker rose 3.35 per cent to €14.50 on the Dublin market, a day after figures showed US housing starts in November were the highest in 19 months. The stock also posted gains on the London market, where it now has its primary listing.
Ryanair fell 2 per cent to €3.72. The airline was one of six Irish stocks identified by stockbroking firm Bloxham as having the potential to generate positive shareholder returns in 2012. The other five stock picks in its outlook were DCC, FBD, Kerry, Paddy Power and insulation-makers Kingspan, which advanced 4.9 per cent to €6.40.
Bank of Ireland rose 1.2 per cent to 8 cent on a day when more than 500 banks across Europe piled into the ECB’s tender.
The bank has also had its second restructuring plan approved by the European Commission, which confirmed it is in line in state aid rules - the approval was described by Davy analysts as “an important hurdle” for the bank.
