The post-Budget surge in trading activity continued again yesterday in Dublin with particularly strong demand for financial stocks. Dealers said the demand was also fuelled by the creation of the second-largest bank in the world, after Union bank of Switzerland and Swiss Bank Corp announced a merger. This initially boosted shares in London and Dublin followed the wider European trend.
Dealers say they are confident the strong post-Budget trading will continue well into the new year. The decision to cut capital gains tax and corporation tax is said to be have been well received by international investors.
Other traders said the proximity of EMU was focusing attention on the prospect for lower interest rates and this was another factor supporting the financial stocks.
The Budget feel-good factor was there for property and building stocks too, said dealers.
For example, CRH proved the biggest earner of the day with a 25p gain to finish at 855p. Speculation about a large order from London was one reason for the stock's performance, said dealers.
Green Property traded strongly, rising from 370p to 400p. The rights issue announced by the company at the end of last month is being seen positively by the market.
Abbey, normally a sleepy stock, traded up 15p to close at an impressive 260p, on the back of the expansionary measures announced in the Budget.
Dealers said the strength among the financials was widely spread with second-line companies like Anglo Irish Bank rising 5p to close at 125p. Bank of Ireland was subject to aggressive trading, starting at 995p and closing at 1005p. Allied Irish Bank closed at 675p up 10p on late Friday trading.
Other movers were Clondalkin, up 20p to finish on 570p and Fyffes down 2p to close on 112p.
Waterford Wedgwood traded up 3p on the back of its announcement that it plans to acquire all outstanding shares it does not own in Rosenthal, the German porcelain manufacturers. The results of United Drug were as the market expected so there was little trading activity in the stock.
The bond market was quiet as a bullish curve flattened out. The best performers were the 2008 bond onwards, but price movements were the result of marketmaking rather than actual deals.
The main focus of attention will be the consumer price index figures due out on Thursday, which may set the new year trading patterns.
