Banking stocks pull ISEQ index upwards

THE main banking stocks pulled the ISEQ index of Irish shares upwards yesterday, on the back of the announcement of the planned new “Basel III” capital rules for European banks, which are aimed at preventing another serious banking sector meltdown.

AIB, on the first day of trading since the announcement of the sale of its Polish operations to Spanish banking giant Santander, finished yesterday up by 4c – or 4.82% – at 78c, having been slightly higher earlier in the day.

Elsewhere, Bank of Ireland reached 72c; 4c or 5.43%, higher than Friday’s closing price. Irish Life & Permanent (IL&P) – which remains confident over its chances of buying EBS and merging it with its Permanent TSB retail banking arm and raising the necessary funds to do so, despite reports building up the chances of rival bidders – was up by 10c, or 6%, at €1.70.