Bank stocks weak despite ECB rate cut

The ISEQ index gained 22.92 points to end the day at 2,502.48 points.

The European Central Bank slashed its key interest rate by a bigger than expected 0.75 basis points to bring the base rate down to 2.5%. It is the biggest single reduction in the rate since the formation of the eurozone’s central bank in 1999.

The main financial stocks endured a miserable day, notwithstanding the large interest rate reduction. AIB eased 14c to €2.05, Bank of Ireland decreased 7c to €1.02, Irish Life & Permanent gained 8c to €1.52, while Anglo suffered more losses closing 19c down at 48c.

In construction, CRH increased 46c to €17.66, Kingspan declined 2 to €3.16 while Grafton jumped 16c to €2.29.

In other news, Ryanair added 4c to €2.94. Aer Lingus jumped 7c to €1.35, Kerry Group dipped 6c to €17.04, Glanbia rose 4c to €1.92, while Paddy Power rose 62c to €13.22.