The Irish stock market closed more than 1 per cent higher, helped by a strong performance from industrial shares, including Eircom. The telecoms group firmed by 3.7 per cent, or 15 cents, to €4.22 1/2. Dealers said the price target of €4.77, set by broker Salomon Smith Barney on the basis that Eircom was a likely takeover or merger partner, had lent some support to the share price yesterday.
Another notable industrial performer was Elan, which was up by €2.05 in Dublin at €29.55. On the Nasdaq, the pharmaceutical group was 2.8 per cent higher by the close of trade here, at $29.37 1/2.
Dealers said Fyffes continued to benefit from the recent launch of worldoffruit.com, its Internet-based fruit exchange, gaining 6.4 per cent or 19 cents to €3.14. Other leading industrials were mixed, with CRH losing five cents to €19.30 and Smurfit gaining three cents to €2.91.
Although the two main banks started the day on a positive note, dealers said sentiment quickly turned negative. Bank of Ireland suffered most, ending the day some 22 cents lower at €6.73, and while AIB managed to perk up toward the close, finishing six cents higher at €9.63, this figure was off an earlier high of €9.87. Elsewhere, Irish Life & Permanent lost 13 cents to €8.65.
Overall, financial shares closed more than 1 per cent lower on the day compared to a gain of more than 2 per cent for the general index. Uncertainty ahead of key policy meetings by the US Federal Reserve and the European Central Bank next week did not help the financial sector, dealers said.
