Liams Last Post : Airlines due to takeoff ? the Banks look ok.

Good Afternoon ,

 

Markets closed on Monday in perkier mood. The Airline sector rallied this afternoon after sharp falls this morning when Aircraft started to be flown again tentatively mind you but certainly a big resumption of traffic across Europe. At 15:30pm today the UK air traffic control centre NATS said that UK airspace would begin to re-open tomorrow from 07:00am in Scotland and gradually move southwards. It said it is a assuming there are no further significant ash emissions we are now looking at a continuously improving situation," it said that this is a dynamic and changing situation and is therefore difficult to forecast beyond 0700 (BST) local.

Aer Lingus and Ryanair wee both down -4% at the end of the day but there was definitely a slightly ore optimistic tone to the airline sector with the news of a potential resumption of flying and a few brokers writing and modelling that the airlines were discounting a much worse scenario that is the likely scenario.

The Irish Financials were the best performing sector with OK results from M&T and the weekend press indicating that the market can expect Bank of Ireland to trigger their Capital raising next week drove positive sentiment. The Goldman Sachs rebuttal of the Fraud charge also played well and gave some comfort to markets

The building materials stocks pulled back on low volume with Grafton falling -4.5% after the rally of last week. Remains range bound ….but a laggard and starting to get my attention more and more.

Paddy Power also gave back a chuck of ground back to the Eur25 level. Given what we learned in our survey , the weakness does seem to present an opportunity to get involved at these levels.

 

Have a good evening.

 

Liam

 

 

________________________________________

Liam Boggan

　

Merrion Stockbrokers

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