Liams Last Post : Banks rally on stakebuilding rumours ahead of Lenihan rabbit trick tomorrow.

Good Afternoon,

 

Its all very amazing…the market is waiting for the biggest rabbit to be pulled out of the hat since the Government Guarantee scheme was introduced two years ago yesterday. Tomorrow Brian Lenihan is expected to stand up and make a pronouncement about the total cost of Anglo. He cant know , but he has to sound convincing… We are aware that the eyes of the financial world will again be on Ireland and that Bloomberg are sending their reporters to Dublin to copycat what CNBC did a few weeks ago ahead of the last bond auction.

 

The Banks are all up today , recouping some of their losses from yesterday. There are stories speculating about who has been behind the volume in Bank of Ireland.  I have heard one name several times.  It will be interesting to see if it is true…. Either way there has been plenty of volume for the last few weeks…Bank of Ireland gained  +5.6% whereas AIB ADR continued to strengthen after the European close. AIB closed +10% in Europ and the ADR at 5pm is +14% , the Bank of Ireland ADR is up +8.4%

 

The building materials stocks continued to struggle albeit Wolseley in the UK was up against the trend and closed +6% whereas Travis Perkins was down slightly and Grafton was flat on the day with Kingspan down just under -2%

 

Aer Lingus is rising quietly up again today +2.7% at 1.07. There was no news emerging from the Ryanair investor day today in the UK but the stock gained +1% though Air Berlin closed -2.8%

 

 

 

 

___________________________________________

Liam Boggan

　

Merrion Stockbrokers

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