THE Dublin market got off to a quiet start this week with international markets generally remaining in holiday mode.
With London and New York both closed on Monday, investors largely stayed away from share dealings. Dealers in Dublin also reported relatively low volumes of activity but had plenty of news to digest.
Annual general meetings at Kerry and Smurfit and reports of the Central Bank's concerns about credit growth in the economy dominated events on the Irish market.
While speculation about US interest rate policy worried markets "for a time, the US Federal Bank later said it would not increase interest rates to fight inflation.
On Monday, Kerry chief executive, Mr Denis Brosnan, was ate pains to reassure the group's shareholders that the proposal to reduce Kerry Co-op's share holding in Kerry Group would not jeopardise the future independence of the company.
Speaking to shareholders in Tralee, Mr Brosnan also assured them that the future of the Kerry based dairy business would be secure if the proposed rule change is sanctioned.
The Smurfit Group kicked off the week by agreeing to changes in its recently announced bonus scheme for chairman and chief executive, Dr Michael Smurfit.
Following pressure from fund managers, the group decided that some of the maximum potential payout to Dr Smurfit under a £10 million long term scheme will be clawed back if the company fails to perform as well as its competitors in the paper and packaging industry.
The annual bonus scheme, under which Dr Smurfit can get up to £2.5 million per annum, based on the profit performance, remains unchanged. Having appeased fund managers, Dr Smurfit's comments on the group's current trading on Thursday put the share price under pressure.
His bearish comments fuelled selling pressure, with the share price under pressure in the wake of consequent profit and earnings downgrading by brokers. However, by last night Smurfit shares had stabilised for the time being.
While financial stocks were largely ignored the Central Bank's concerns about growth in mortgage and other lending in the economy focused market attentions on the sector.
In other news Dublin based Tinsley Wire has emerged as the buyer of the stock and plant of Barlo's IRG wire subsidiary in Limerick. Barlo agreed to sell the stock and plant for about £1.4 million.
Overall second line stocks were generally firmer, while CRH and Kerry both managed to hit all time highs. On Wednesday, CRH moved back to 600p while Kerry reached a new high of 640p.
Golden Vale also emerged as one of the most heavily traded shares, with Stock Exchange volumes indicating the company accounted for over 4 per cent of shares changing hands in Dublin in a single day.
