Domestic banking stocks battered

DOMESTIC banking stocks took a battering yesterday amid pre-NAMA transfer speculation that the Government’s stakes in AIB and Bank of Ireland could increase to 70% and 40%, respectively.

On the eve of the announcement of the first NAMA-directed loan transfer schedules and discounts and the recommended post-NAMA funding level announcement from the Financial Regulator, nearly half a billion euro was wiped off the combined value of Irish financial stocks.

Regarding the big two, AIB fared the worst falling by nearly 20%, or 33c, to close at €1.37. For much of the day, Bank of Ireland was down by just over 6%, but ended up shedding nearly 11% in total, or 14c, in monetary terms, to close the day at €1.25.