Default fears prompt NTMA statement on AIB payment

Iseq:2,807.86 Settlement Date: March 25th: RUMOURS OF a possible default on bond coupon payments by an Irish bank were the only notable feature in a fairly lacklustre session on the market yesterday.

Speculation prompted the NTMA to issue a statement during the afternoon stating that AIB would make its coupon payment. AIB also issued a statement confirming payment would be made in relation to a €400 million lower tier-two bond.

The speculation had minimal impact on banking stocks according to traders in Dublin, with AIB finishing the day flat at just under 20 cent, though Bank of Ireland did finish at the lower end of its trading range, closing down 6 per cent at €0.28. Irish Life and Permanent managed to add 1 cent to €0.67.

Overall, most of the main players on the Iseq finished in negative territory. Macro concerns continued to shape the direction of the market, with the high oil price continuing to cause concern. The Iseq tracked trends in Europe, opening strongly, only to retreat in afternoon on worries about trouble on the bond markets.

Independent News Media was one of the few sources of stock-specific news. Its strong set of results failed to push the price into positive territory, though it did finish the day flat at €0.59, a good result considering the weak market according to one analyst.

Providence Resources’ announcement that it has signed a contract with Polarcus Limited relating to a project in the Porcupine Basin failed to live the company’s share price, with Providence closing off 1.5 per cent at €3.15.

TVC was boosted by strong results from UTV. The ESM-listed company rose close to 4 per cent to finish at €0.85.

Ryanair was one of the most strongly traded stocks, though it closed down over a half a per cent at €3.23, having traded around €3.30 for much of the session.