Banks recapitalisation weighs heavily

The ISEQ index closed down 48.29 points at 2,359.53, as investors weighed up the details of the recapitalisation of AIB and Bank of Ireland. The terms of the deal include e3.5bn in capital being injected into each bank in the form of preference shares.

In the financial sector, AIB dived 16c to 93c, Bank of Ireland fell 10c to 61c, Irish Life & Permanent weakened 29c to 1.65, while insurance group FBD Holdings moved up 40c close at e8.50.

In the construction sector, CRH declined 27c to e18.59, Kingspan decreased 15c to e2.31 and Grafton Group lost 14c to e1.63.

Elsewhere, Ryanair fell back 8c to 3.13, Elan jumped 27c to e6.09, Merrion Pharmaceuticals jumped 1.05 to e5.15, while Kerry Group ended the day 11c stronger at e14.58.