Market Report

Settlement Day: July 17th: Markets in Europe edged lower yesterday spooked by news on margins and inventories at US chip giant Intel and slower consumer spending in the US. Dublin followed the trend with most of the leaders slipping, though the market overall was down just 0.03 per cent.

All the financials closed in the red with AIB down seven cents on €12.30, Bank of Ireland four cents weaker on €10.55, Anglo Irish off 12 cents on €12.81 and Irish Life & Permanent closing on €12.53, down 12 cents.

Elsewhere, there was some profit-taking at housebuilder Abbey ahead of what are expected to be very good results this morning. The stock, which has run ahead 10 per cent in recent weeks, was down three per cent or 27 cents on €8.68 at the close. Dealers expect to upgrade forecasts following today's numbers with some saying that much of any upgrade is already priced into the stock.

There was also interest in rival McInerney, which traded as high as €5.28 in reasonably substantial volume before closing unchanged on €5.25.

Stockbroker Davy is understood to be particularly bullish on the housebuilder stocks in a report being sent to clients. It is understood the broker expects housing completions to total 90,000 this year, a rise on last year's record of 69,000 and well ahead of all forecasts for the sector to date.

Davy is also upgrading its figures on the broader economy, pencilling in GNP growth of 4 per cent this year, from 3.7 per cent previously, and 3.5 per cent in 2005, up from 2.6 per cent.

Grafton Group had a good day, going seven cents stronger as the market considered the implications of the offers for Brooks on the valuations of other businesses in the sector.

Greencore gave up five cents to €3.01 as the market digested proposals from the EU on reform of the sugar regime. Ryanair saw some reasonable business, ending the day three cents stronger on €4.72 following an upbeat trading statement from Iberia.