THE Irish market slipped a little yesterday, despite a bullish tone on international markets. Dealers said there was reasonable activity but a little more buying than selling overall.
Tullow Oil had the most volatile session. Tullow announced disappointing results from an exploration well in Pakistan which flowed poor quality gas. The shares fell 6p to 100p sterling.
Managing director, Mr Aidan Heavey said the company was disappointed by the quality of the gas discovered in the Sara West-1, located in East Badin extension Block B. This the company considered to be "sub-commercial at present".
The main financial stocks drifted. AIB lost 1p to 361p while Bank of Ireland remained flat at 470p, having traded as low as 465p. Irish Permanent rose 2p to 420p, an all-time high for the bank.
CRH lost 2p to close at 616p, Fyffes also lost, falling 1p to 103p.
Jurys was one of the biggest losers, falling 15p to 265p, while Unidare gained 5 to 180p.
The bond market had a very good day. There was very strong international buying, particularly in the 10-year area.
Traders said British and continental European funds were buying on a "convergence trade" similar to last April.
Dealers said the market focus is now likely to switch to the US ahead of the release of August consumer prices and retail sales data on Friday.
Traders said the market is now expecting a quarter point rise in US interest rates. "The CPI report today will tell us more," one analyst said.
The benchmark 10-year bond rose to 104.00p to yield 7.28 per cent from 7.35 per cent while the five-year rose to 104.48p to yield 6.6 per cent from 6.71 per cent.
