The unexpected cut in interest rates by the Federal Reserve gave Irish technology shares a much-needed boost yesterday, but financial and industrial stocks failed to respond to the recovery on European markets. Dealers said that investors might have been waiting to see if yesterday's huge early gains in New York were sustained into the final session before buying into the Irish market.
The star of the day was software group Smartforce which turned in glittering first quarter figures well ahead of market forecasts. With analysts sharpening their pencils for earnings upgrades, Smartforce was up almost 15 per cent by midday in New York at $30.69.
Other software groups also benefited from the better tone with Iona up almost 10 per cent on $37.11 while even the members of the "90 per cent club" - Baltimore and Parthus rebounded from their current lows. Baltimore gained 11p to 77p sterling while Parthus was 81/2p higher on 821/2p sterling in London.
The only action of any note in Dublin was in Eircom which jumped 10 cents to €2.60 as Vodafone shares rose sharply after the Fed move on rates. The cut in Fed rates is timely for Vodafone with the offer document for Eircell being dispatched to Eircom shareholders this week.
Anong the leaders volumes were modest. AIB gained 32 cents to €12.05, although Bank of Ireland drifted five cents to €10.10.
