ISEQ falls by nearly 4% as banks take hard hit

DUBLIN’S ISEQ index of shares fell by nearly 4% to, just over 2,703 points yesterday – with each of the banks taking significant tumbles – but the country’s three main financial stocks are being tipped for further gains mainly on the back of the proposed new National Asset Management Agency (NAMA) putting a more healthy gloss on them.

A new research note on the Irish financial stocks, from financial services giant JP Morgan Chase said that any favourable NAMA legislation outcome “is likely to drive another leg of share price appreciation for Irish banks”.

The recent recovery in Irish banking stocks has seen them go from being the worst performing financial stocks in Europe, earlier this year, to being the best in the second quarter of the year.