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Bank share losses near €1bn after election hit

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Plans: Sinn Féin made gains under Mary Lou McDonald. Photo: Niall Carson/PA Wire

Plans: Sinn Féin made gains under Mary Lou McDonald. Photo: Niall Carson/PA Wire

PA

Plans: Sinn Féin made gains under Mary Lou McDonald. Photo: Niall Carson/PA Wire

Bank shares were hit for a second day of losses yesterday thanks to Sinn Féin's election surge, although property companies bounced back from the steep falls seen on Monday.

AIB shares closed at €2.344 yesterday, down from a pre-election close of €2.50, and Bank of Ireland stock was trading at €3.86, down from Friday's close of €4.31, in trading that has slashed €938m from their market capitalisation.

Sinn Féin's manifesto pledged to increase the bank levy to €200m from €150m, and it has said it will end the ability of banks to use crash-era losses to offset taxes on current profits.

Some of the property-related stocks that also suffered losses on Monday staged a recovery, with Cairn adding €0.04 to €1.164, and Irish Residential Properties REIT up €0.008 at €1.508.

Glenveagh Properties shares were down €0.018 at €2.31 as investors digested Sinn Féin policies such as a rent freeze.

Irish Independent