Banking stock pre-NAMA volatility continues

THE anticipated volatility in the performance of the Irish banking stocks ahead of the NAMA legislation coming before the Dáil next month continued yesterday with a 4c rise in Bank of Ireland shares the highlight of the day.

While the ISEQ inched higher for a second consecutive day, up by 0.39%, or 11.26 points, to 2,876.41 points, the banks endured differing fortunes. Bank of Ireland’s 4c/1.93% rise to €2.06 followed on from a 1c rise on Tuesday. However, AIB continued its downward trajectory (down 17c on Monday and a further 6c on Tuesday), shedding another 2c yesterday to close at €1.99. Irish Life & Permanent (IL&P), largely untouched by NAMA due to its lack of property sector-exposed loans, fell by 2.14%, or 8c, to €3.65.

Goodbody Stockbrokers yesterday referred to NAMA as being “the most appropriate solution” to the lending and liquidity crises engulfing the Irish banking sector, adding that, post-NAMA introduction, institutional investors’ interest in the Irish banks could well pick up.