Petrel Resources plunges over 50% on AIM

Market report: Dublin edged higher again yesterday in heavy volumes. It was an Irish company listed elsewhere, however, that hogged the headlines.

AIM-listed exploration group Petrel Resources shed more than half its value after failing in its much-hyped campaign to secure rights to search for oil in Iraq. The shares fell 51 pence to 46p in 10 times its normal trading volumes.

Closer to home, Grafton had a particularly strong day, adding 43 cent, or 5.5 per cent, to close on €8.25 after British group Travis Perkins paid 15 times earnings for DIY group Wickes.

At the other end of the scale, Waterford Wedgwood shed 1½ cent to close below 7 cent, following publication of details of its rights issue and the confirmation of its bid for Royal Doulton. There was busy trade in the stock, with 14.7 million shares changing hands in Dublin.

Among the leaders, there was plenty of interest, with the sector outperforming its European peers. AIB added 12 cents to close on €14.90, while Bank of Ireland shed a cent to close at €12.14, having hit €12.25 earlier in the day following news of the group's acquisition of a specialist lender in Britain.

Anglo Irish Bank had another winning session, closing 10 cent stronger on €17.90, while Irish Life & Permanent was also 10 cent up on the day after a bullish trading statement.

CRH hit a 12-month high of €20.05 before retreating slightly to close on €19.99, up 16 cent, after the dollar firmed significantly yesterday.

Kerry Group, which would also be expected to benefit from a stronger dollar, actually lost 5 cent to €18.20.

Fyffes, which would prefer a weaker dollar, and is plagued by uncertainty over its court clash with DCC, was 3 cent ahead at the close on €2.03 following good news on the wholesale price of bananas.

Bookmaker Paddy Power fell four cent to €10.83 after the British government deferred the roll-out of new rules on casinos, hitting sentiment in the sector.

Settlement Day: December 21st