MARKET REPORT:WITH THE dollar falling to new lows and oil at record highs, it was looking like it was going to be a bad day at lunchtime, but the Iseq index rallied as the US markets opened and closed down less than 1 per cent.
As oil briefly hit $102 per barrel, some 7.5 million shares were traded in Ryanair, which fell 5 cent to €3.39. Aer Lingus, which lost 4 cent to close at €2.31, was downgraded by NCB Stockbrokers, which said the group's new US routes look "vulnerable" given recession concerns, while demand for short-haul seats may soften.
NCB said it understood the airline is now paying spot prices for 90 per cent of its 2008 fuel needs.
But European airlines may not have to worry about the price of fuel if they start to suffer from the same problem as their Australian counterparts - a shortage of pilots.
Goodbody Stockbrokers noted that Ryanair, which is adding 20 per cent to its capacity, would "love a collapse" by another carrier in order to free up fresh flying blood.
The major local news of the day came courtesy of Irish Life & Permanent, which traded up after producing a solid set of 2007 results but sold off after a conference call with senior management failed to alleviate concerns about the bank's funding. It fell 3 per cent to €10.90, shedding 34 cent.
Food group IAWS rose 41 cent to €13.45, as CSM, the largest supplier of bakery products worldwide, said the US slowdown would have only a limited effect on sales.
There was a rush on C&C ahead of tomorrow's trading statement, and it finished up 4 per cent at €4.58, up 19 cent. Sticking with the food and drink sector, there was more positive feeling for Kerry, which added 37 cent.
More bad news about Elan's Tysabri drug emerged after the Dublin market closed, punishing the firm's shares in the US.
