IN&M trades heavily in wake of O'Brien move

Market Report: Independent News & Media took centre stage again as 13.4 million shares traded and the market continued to reel at news of the firm's latest prominent shareholder, Denis O'Brien.

The stock traded as high as €2.70 before easing slightly to finish at €2.68, up 17 cent on the day. Dealers said investors seemed to expect Mr O'Brien to build on his 3 per cent stake. Much focus yesterday fell on the break-up value of the stock.

Things were quieter elsewhere, with the banks doing little to ignite events. AIB was strong, rising by 18 cent to €18.13, boosted in part by solid results from its US associate M&T.

Bank of Ireland fared less well, closing flat at €13.65, while Anglo Irish added 20 cent to finish at €13.20.

Irish Life & Permanent fell by one cent to €17.03. Goodbody noted yesterday that the stock is the most likely of the main names to feel the impact of new competition this year. Citigroup has meanwhile raised its target on Irish Life & Permanent from €15.50 to €17.

Still among the financials, IFG did well after receiving an upgrade from Davy, which cited the firm's recent acquisition of Bank of Scotland Trust Jersey's business. Shares in IFG climbed by nine cent to €1.64.

Abbey fell back in advance interim results due today, dropping 25 cent to €10.50. Analysts are expecting a decline in pretax profits. Fellow housebuilder McInerney, which will update the market this day week, lost eight cent to €11.12.

Grafton is due to issue its own trading statement tomorrow, with shares rising by 18 cent to €9.27 yesterday. NCB expects concerns over the firm's exposure to the weaker UK market to dissipate over the course of 2006.

Kingspan, which updated the market last week, rose by 23 cent to finish at €11.08. CRH was fairly quiet before closing one cent stronger at €25.36.

C&C, which is awaiting winter market research for the UK cider market, added six cent to end the session at €5.59.