ILP plunges 45% as State control of bank looms

Iseq: 2,876.66 (–29.77) Settlement date: April 1stIRISH LIFE & Permanent was the main story on the Dublin market yesterday. Shares in the group fell as much as 50 per cent on media reports that the Government will have to take control of the group when the bank stress tests are announced tomorrow.

IL&P recovered marginally to finish 45 per cent lower at 40.5 cent have traded in exceptionally high volumes.

Other financial stocks also lost ground but to a much lesser extent. AIB shed 2.6 per cent to €0.19, while Bank of Ireland lost 4.3 per cent, or one cent, to €0.25, though this was linked to the underperformance of European banking stocks generally according to analysts, as Italian bank UBI Banca announced a surprise €1 billion capital increase.

Overall there was a “negative feel to the market” according to one Dublin trader, with most of the main names ending in the red. However, volumes were heavy.

While the Aer Lingus annual report published yesterday contained minimal new information, chief executive Christoph Mueller’s comment that the company’s 2011 fuel bill will be “substantially” higher than in 2010 helped to push the share price lower. The airline closed down 3.3 per cent at €0.73, on strong volumes.

Ryanair was one of the few stocks to make gains, adding 1.1 per cent to €3.31.

The Iseq’s largest constituent, CRH, shed 24 cent or 1.4 per cent, closing at €16.65, though this was in effect a reversal of the strong advances made by the building stock in the previous session, according to traders.

Financial services company IFG added 3 per cent to €1.40 ahead of results this morning, while online travel company Datalex fell 8 per cent to €0.23.

Mobile phone services group Zamano rose 25 per cent to €0.05.