Banks hit by ratings downgrade

THE Irish market recovered slightly yesterday, having lost ground earlier in the week. The ISEQ index added 37.34 to close at 2,310.53.

Tuesday’s emergency budget saw the Government announce the setting up of a “bad bank” to relieve banks of their toxic assets. Despite this announcement Moody’s downgraded ratings on 12 banks operating in Ireland, thus causing share prices in the two main banks to tumble in early trading. Prices recovered but not enough to match Tuesday’s close. AIB and Bank of Ireland shed 9c and 7c to e1.19 and 89.5c. Irish Life and Permanent added 9.5c to e1.74.

In construction, CRH rose 26c to e16.26 while Grafton Group and Kingspan had mixed fortunes, the former adding 2c to e2.05 and the latter down 1c at e3.31.