AIB Eurostoxx entry prompts heavy trading

Dublin Report: AIB's inclusion in the Dow Jones Eurostoxx 50 index dominated all other news on the Irish market yesterday.

The Iseq index of Irish shares climbed 24.18 points to close at 6,506.54 on a day when the State's biggest bank got most of the limelight.

By close of business, dealers said that 32 million shares in AIB had changed hands, compared to the more usual two million. The stock closed 24 cent or 1.33 per cent down at €17.20

Traders pointed out that yesterday marked the end of a "great run" for the bank during which investors had pushed the price ahead in anticipation of its inclusion in the index of Europe's top 50 companies.

Its nearest rival on the Dublin market, Bank of Ireland, benefited as some buyers moved out of Allied, and added 20 cent to close at €13.25 with 4.17 million shares traded on the day.

Elsewhere in financials, Anglo Irish Bank dipped nine cent to €10.05 after 1.74 million shares changed hands. Irish Life and Permanent, owner of Permanent TSB, gained 20 cent to close at 14.50 on solid volumes of 725,000 shares.

Fruit importer Fyffes basked in a little sunshine after the company issued a positive pre-close statement saying that sales had been very strong during the first half of the year.

The stock hit a high of €2.50 before closing 11 cent up on the day at €2.44 after investors plucked 1.66 million shares. Brokers NCB revised its earnings forecast for the group and set a target price of €2.70.

Dealers also noted that pharmaceutical company Elan was "all over the place" during the day before closing 40 cent up at €5.60. Market watchers could identify no particular reason for the drug group's movement.

Low-cost airline Ryanair was quiet, with 1.18 million shares changing hands. It gained four cent to end the day at €6.40.

Tullow Oil struck lucky for a while after a positive annual general meeting statement, attracting bids at €2.90 before closing two cent off at €2.81.