Market falls on banking speculation

THE Irish market fell again yesterday as investors absorbed yet more negative speculation surrounding the state of the banking sector. The controversy was sparked as it came to light that short-term loan deposits were made by Irish Life and Permanent into Anglo-Irish Bank last September as the Government deposit guarantee scheme was being negotiated. The ISEQ index slipped 37.16 points to 2,407.82.

The banking stocks finished weaker with AIB and Bank of Ireland giving up 8.7c and 8.8c to €1.08 and 61c. Irish Life and Permanent’s share price was affected by negative press coverage and dropped 21c to €1.94.

In construction, CRH climbed 8c to €18.86 while Kingspan and Grafton Group lost ground, down 10.1c and 1c to €2.46 and €1.77.