AIB shares advance even as European stock markets edge lower

AIB led the gainers among the heavyweights, closing 2% up on the day to extend their winning streak since the start of the year to 23%

AIB shares — which stock markets value at over €12.5bn — have now extended their lead over Bank of Ireland since the banks unveiled their 2023 financial results. 

European shares edged lower, led by a slump in the telecom firms, while shares in Ireland slightly outperformed thanks to gains for AIB. 

The pan-European Stoxx 600 index of Europe's most valuable firms was down 0.1%, with the Iseq index in Dublin rising slightly by 0.1%, to outperform European stock market peers.

However, shares in Dublin were mixed overall, in very thin trading. 

AIB leads the gainers among heavyweights

AIB shares led the gainers among the heavyweights, closing 2% higher on the day, to extend their winning streak since the start of the year to 23%. 

AIB shares — which stock markets value at over €12.5bn — have now extended their lead over rival Bank of Ireland since the Irish banks unveiled their 2023 financial results in recent weeks. 

Bank of Ireland shares have nonetheless risen 8.5% this year to value the bank at €9.4bn. 

Permanent TSB shares have fared badly since the lender posted its annual report earlier this month. The shares which fell 1% in the latest session have now shed 19% of their value since the start of the year. PTSB is valued on stock markets at €750m.    

Shares in building materials maker Kingspan and in foods giant Kerry Group were little changed in the trading session. The two companies are more valuable than the two leading banks, with stock market capitalisations of €15.3bn and €14.2bn, respectively. 

Shares in Glanbia, which closed unchanged in the latest session, have gained 20% since the start of the year. 

Telecoms shares lead decline across Europe

Across European exchanges, the telecoms sector led declines with a 1.4% fall for its worst day in three months, while car and parts shares advanced. 

Oil and gas stocks rose after Brent crude oil briefly topped $86 a barrel for the first time since November, before pulling back, as Ukraine stepped up its attacks on Russian energy infrastructure. Technology shares  were up as investors geared up for an annual developer conference by artificial intelligence darling Nvidia. 

Eurozone inflation increased as expected at an annual rate of 2.6% in February and 0.6% on a monthly basis, keeping views unchanged on the timing of the first rate cut by the European Central Bank.

"Today's figure is not likely to influence any rate cutting decisions materially," said Michael Field, European market strategist at Morningstar. He continued: 

But with the majority of economists predicting the first ECB rate cut in June, it's safe to say February's inflation reading will not adversely alter this likelihood. 

Germany's 10-year benchmark bond yield rose 2 basis points to almost 2.46%. Ireland's equivalent bond fell, to around 2.83%. 

Money markets currently expect the ECB to cut interest rates by 83 basis points in 2024. 

The US Federal Reserve, Bank of Japan, and Bank of England's monetary policy meetings, due later this week, will also be on investors' radar for more clues on the trajectory of monetary policy easing globally.

In corporate updates, shares of Polish fashion group LPP jumped by over 20% to top the Stoxx 600 index, recouping some of last week's losses made after a Hindenburg Research report questioned the 2022 sale of its Russian assets. 

TGV trains maker Alstom added almost 6.5% after Deutsche Bank upgraded its rating. 

• Additional reporting Reuters