Banks shares stage rally

IRELAND’S financial stocks rebounded yesterday as the European Commission backed further moves to alleviate the country’s banking crisis.

While the ISEQ index of Irish shares, as a whole, continued its upward creep (yesterday’s marginal rise amounting to just over 1.4%, to 2,875 points), the banks reversed Monday’s poor showing with their own small gains.

On the back of lessening concerns over the eurozone’s economic crisis and the temporary EC approval for additional state support for AIB, Irish Nationwide and Anglo Irish Bank, banking stocks rallied.

The EU’s Competition Commissioner, Joaquin Almunia, called Ireland’s state aid for its banking system “necessary to ensure that these institutions meet their respective obligations” and a way of preserving the country’s financial stability.

For its part, AIB was up by 2.7%, or 1c, at 42c; Bank of Ireland jumped by nearly 9% to 34c and Irish Life & Permanent (IL&P) was up by 7.8%, or 7c, to 98c.

The real value, however, was elsewhere; with building materials giant CRH climbing by 44c to €15.84; support services group, DCC up 30c at €22.95; food group, Kerry up by 10c at €25.70 and freight and ferry group, Irish Continental (ICG) gaining 10c to close at €15.40.

One surprise, however, was the 90c fall — to €34.10 — suffered by Irish-Swiss bakery business, Aryzta.