Better international markets helped Irish stocks notch up further gains - with solid demand for leading and some selected second-line stocks. The main feature on the home market was heavy selling of Ryanair after the Credit Suisse First Boston warning about a possible share issue, while on the Nasdaq, the heavy fall in Smartforce after the all-share $284 million Centra acquisition was the main feature.
Almost four million Ryanair shares traded in Dublin, and the shares hit a low of €6.40 before ending nine cents lower on €6.50. Ryanair has now fallen from its €7.10 high since the start of the year and the prospect of a placing will weigh on the shares.
Demand from overseas continued to boost financial shares with AIB up 31 cents on €12.58, while Bank of Ireland traded in size but weakened from a €10.90 high to close just two cents higher on €10.65. Anglo Irish gained 14 cents to €4.49 while Irish Life & Permanent was 15 cents higher on €12.15. IFG gained 10 cents to €3.30 as CGNU disclosed that it bought another 617,233 shares on Wednesday, taking its stake to just under 6 per cent.
Elan was given a boost by an upgrade from Salomon, but the response in the market was minimal and, on the NYSE, the shares were marginally higher on $44.54. CRH gained 15 cents to €19.27 while Kerry - seen as a possible bidder for Nestlé's food flavouring business - jumped 45 cents to €14.70.
Greencore gained 18 cents to €3.20 and the share is now up 14 per cent on the start of the year. Smurfit was one cent firmer on €2.46 as US investment house Franklin emerged as one of the recent big buyers of the stock. Franklin disclosed that it bought 2.6 million Smurfit shares in the past week, taking its stake to 5.1 per cent.
On the Nasdaq, the Centra acquisition and the size of the share issue hit Smartforce shares. By midday in New York, 10 times the average daily volumes had traded as the shares initially fell as low as 20 per cent before regaining some ground. The Centra deal is seen as a good fit for Smartforce, but some believe that the price is too high.
