Market retreat led by banks

THE ISEQ index fell 54.57 points to 3,157.61 yesterday.

The main bank shares were actively traded as speculation mounted ahead of the forthcoming announcements regarding its planned restructuring of the banks. The banks had hoped to raise capital privately first but authorities may impose deadlines for increasing their capital which would require more state aid as a consequence.

In the financial sector, AIB weakened 33c to €1.36. Bank of Ireland declined 14.5c to €1.24. Irish Life & Permanent slipped 16c to €2.89, while insurance company FBD Holdings moved up 6c to €6.90.