The pre-Christmas winding down process coupled with a reluctance to trade in advance of the euro launch on January 1st set the tone for another sluggish day on the Irish Stock Exchange yesterday. The ISEQ eased back 0.3 per cent yesterday, reflecting a decline in general stocks and amid a subdued mood in Europe.

German and French indices were also slightly down yesterday, tracking the Dow Jones in early trading, and digesting the news of the first rise in German unemployment for nearly a year.

Irish financial stocks held their own, failing to be buoyed by the Footsie's reaction to speculation that the Bank of England may deliver a big interest rate cut this week.

AIB gained 2p, moving from 915p sterling to 1020p, Bank of Ireland was unchanged at 1355p and Irish Permanent was up 10p to 945p. Anglo Irish eased back 2p to 162p. Scrip terms for the 1998 dividend were announced, offering one share for every 56.010933 shares held at £1.68. A director, Mr Sean Fitzpatrick announced the acquisition of 300,000 shares, comprising 0.115 per cent of the stock, at £1.63 each.

Golden Vale, with its announcement of a £19 million rationalisation plan, provided the major news on the day. One dealer said the move should enhance earnings going forward, and was indicative of a drive towards consolidation within the food processing industry in the new year. "There is a general view that if you are to look at this industry in 18 months time, there will be fewer names," the dealer said.

But Golden Vale's plan failed to excite interest yesterday. On three deals, the price remained unchanged at 88p. Other food companies remained fairly static.