Market Report: Irish stocks were mixed yesterday, in line with European counterparts, as investors held back ahead of the US Federal Reserve's decision on interest rates. Drugmaker Elan and drinks distributor C&C led gains.
The Iseq Overall Index climbed 48.24 points, or 0.6 per cent, to close at 7,669.50, after rising to as high as 7,676.79 during earlier trading.
Economists at most of Wall Street's largest firms had expected the Fed to keep its benchmark rate at 5.25 per cent, after lifting it 17 times since June 2004. "The US rate cycle has an impact on what the European Central Bank will do," said one Dublin trader. "The consensus suggested rates would be unchanged, so volumes on the Irish market were pretty thin."
Elan shares jumped 37 cent, or 3.3 per cent, to €11.70 after posting losses the previous day.
Eircom advanced two cent, or 0.9 per cent, to end at €2.21. The former phone monopoly said last week, in its last earnings report as a public company, that revenue rose 21 per cent to €483 million in the first three months of this year.
Shares of C&C extended recent gains, climbing eight cent, or 0.9 per cent, to €8.63, after Goldman Sachs upgraded it to "buy". The new recommendation followed results in early July that showed revenue and operating profit were significantly ahead of expectations for the four months to June 2006.
Goldman Sachs said current market data suggested this momentum continued well into July as Magners, the company's cider brand in the UK, benefited from higher demand due to above-average temperatures.
Weekend reports also suggested C&C was preparing to sell its soft drinks business.
Stocks that recorded declines yesterday included Tullow Oil, which dropped 18 cent, or 3 per cent, to €5.81. The company said initial tests on the Mputa-1 discovery well in Uganda recovered just minor amounts of oil. It shares the well with Australia's Hardman Resources in a 50-50 joint venture.
