DUBLIN REPORT: Iseq:2,158.67 (+19.84) Settlement date:March 30th
THE PERFORMANCE of the Dublin market was a tale of two halves yesterday, with profit-taking dominating morning trading before a rebound on positive US economic data lifted the index into positive territory in the afternoon.
As in other markets, the stocks that have suffered the sharpest falls over the past year have enjoyed the strongest bounce in recent weeks with the two main Irish financials gaining more than 200 per cent since the start of the month.
This rise was truncated by a bout of profit-taking yesterday with Dublin brokers noting that the growing predominance of retail investors was contributing to volatility in these stocks.
AIBand Bank of Irelandsold off in early trade before an unexpected rise in new home sales and improved durable goods orders in the US boosted global stock markets at lunchtime.
However, AIB shares closed down 10.2 per cent at 65 cent while Bank of Ireland declined almost 15 per cent to 49 cent.
Irish Life & Permanentstock fell almost 9.5 per cent to €1.17.
With CRHseen as a likely early beneficiary of a US upturn, the positive housing and durable goods data boosted its share price by more than 2 per cent to €16.28.
Elanenjoyed strong gains, rising almost 10 per cent for the second session in a row to close at €4.90, a gain of 42 cent, on the back of investor meetings and reports that the company may have a treatment for the potentially fatal side effect of its multiple sclerosis drug, Tysabri.
Ryanairmanagement has been bullish in recent days, launching new routes in Spain and making positive predictions about passenger numbers.
This has partially offset fears that the US stimulus plan may lead to oil-price inflation. Its shares closed up 2.3 per cent at €2.82.
