Elan's statement that it knows of no reason for the current weakness in the share price and supportive comments from Goldman Sachs could not prevent the market's biggest stock falling further yesterday, although there were signs of support returning at the lower levels.
Elan fell €3.04 to €46.50 in Dublin and was trading almost $23/4 lower on $421/4 by midday in New York. But the share had fallen to almost $401/2 in earlier trading and there were signs of a tentative rebound. In a comment, Goldman Sachs reiterated its "recommended list" rating for Elan and put a $55 price target for the stock.
Elan's weakness - together with sharp falls by other leading industrials such as Eircom and CRH - was the main factor in the fall in the index. Eircom lost 10 cents to €4.10, and the current weakness in the share price has brought it perilously close to last July's €3.90 flotation price. CRH was hit by profit-taking after its recent good run and was down 731/2 cents on €19.911/2. There was little change in the major financial stocks.
Technology stocks continued their strong rebound. Baltimore dealt up, £11.36 to £87.19 in London and followed this with more strong gains in early Nasdaq which saw the share rise $15 by midday to $138. SmartForce - which managed to withstand most of last week's market carnage - was trading $41/4 higheron $483/4 while Riverdeep continued to recover after its recent hammering followed a €1.30 rise to €5.30 in Dublin with a near $6 rise to $33 in early Nasdaq trading. Horizon was 75 cents higher on €9.75 while ITG jumped 60 cents to €15.60.
