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Thin trading behind 40% hike in AIB share price
07 March 2010 By David Clerkin, Markets Correspondent
The 40 per cent rise in AIB’s share price last week was triggered by a series of trades worth just €6 million.
Shares in AIB rose by more than 20 per cent last Thursday, despite a muted reaction to the bank’s full-year results announcement two days earlier.
The bank reported pre-tax losses of €2.7 billion after writing off almost €5.4 billion in bad debt charges.
Analysts said the share price gains had been driven by improved investor sentiment towards the bank’s future prospects.
Colm Doherty, managing director of AIB, said last Tuesday that the bank was examining ways to repair its damaged capital base using a number of so-called ‘‘self help’" options that included asset disposals.
Irish Stock Exchange data revealed extremely low levels of trading in the bank’s shares following the results announcement, with shares worth just €2.5 million changing hands on the day of the results announcement, and less than €1 million a day later.
The 20 per cent gain last Thursday took place against a backdrop of shares worth €6 million changing hands. AIB added further gains on Friday, with a series of late trades bringing the value of shares traded on the day to just over €10 million.
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