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AIB shares sink after Finance Minister Noonan's warning


Minister for Finance Michael Noonan

Minister for Finance Michael Noonan

Minister for Finance Michael Noonan

European shares staged a late rally yesterday, after ECB President Mario Draghi told MEPs in Brussels that he was ready to do more to fight the risk of deflation.

Earlier poor economic data from Japan plunged global markets lower.

In Dublin, Shares in AIB fell more than 13.6pc yesterday to 8.9 cents each after the Minister for Finance, Michael Noonan, warned that the stock is over valued and set for a sharp correction.

Across Europe yields on most lower-rated - higher risk -Eurozone bonds fell because Mr Draghi said unconventional monetary policy measures could include buying sovereign debt.

In Dublin the ISEQ index of Irish shares finished up slightly at 4,777.41 but with few big swings.

Oil prices fell and global equity markets were mixed in early trading on Monday after news that Japan unexpectedly slipped into recession in the third quarter.

Mr Draghi's comments to MEPs and merger news put a lid on what might have been even bigger declines.

The Japanese yen steadied against the US dollar, pulling back from a fresh seven-year low, as the news set the stage for Prime Minister Shinzo Abe to delay an unpopular sales tax hike and call an election two years before he has to.

The world's third largest economy shrank at an annualised 1.6pc, after a 7.3pc drop in the second quarter.

Tokyo's Nikkei index fell 3pc, its biggest one-day drop since August, and Wall Street was mixed in choppy trade.

Brent oil initially fell more than $1 toward $78 a barrel, as Japan is the world's No 4 crude importer.

News that Allergan had agreed to be bought by Actavis, while Halliburton said it would buy Baker Hughes helped offset declines. The FTSEurofirst 300 index of top European shares rose 0.51pc to close at 1,352.01.


Irish Independent