Market flat as credit bill digested

THE ISEQ index shed 1.46 points to 2,874.10 yesterday.

President Mary McAleese has signed the far-reaching Credit Institutions (Stabilisation) Bill, which gives the Minister for Finance wide powers to direct Irish bank restructuring, in particular to impose burden sharing on subordinated debt.

In the financial sector, the main banks stocks were active with news that the banking reform bill had been signed into law. AIB fell 2.1c to 40c. Bank of Ireland added 0.4c to 34.6c. Irish Life & Permanent gained 1c to 99.3 while insurance group FBD Holdings jumped 25.4c to close at €6.30.

In the construction sector, CRH dipped 2c to €15.82. Grafton Group moved forward 6.9c to €3.29. Kingspan increased 21c to €7.33, while Abbey Group fell 4c to €5.06.

In other news, Greencore’s stock fell 6c to €1.27 after British food group Northern Foods says it had received an approach from British-based food tycoon Ranjit Boparan, but it reiterated its support for a planned merger with Greencore.