In the afterglow of agreement on launching the EMU project, tempered by the compromise over the European Central Bank presidency, the Dublin Stock Exchange remained unruffled, with Wall Street providing the main backdrop for trading action in Dublin.
US Employment Cost Index figures figures gave a positive boost to the ISEQ at the end of last week, diminishing fears that the Federal Reserve would increase interest rates.
On Monday, investors in bluechip shares on the Dow were in confident mood and the index hit a new high of 9,192, before slipping during the week as interest rate hike fears re-surfaced. By yesterday, a new figure showing unemployment levels at 4.3 per cent - the lowest since 1970 - boosted international markets, although rekindling speculation of inflationary pressures in the US. With the bank holiday in Dublin on Monday, the ISEQ remained largely static and, led by the main banks, followed the signal of the Dow's slide on Tuesday. By yesterday, AIB had dropped 30.75p from its 998.75p opening price this week, while Bank of Ire- land slipped 40p from its Monday opener of £14.50. Anglo Irish Bank rose strongly from its opening price of 192p on Monday - closing yesterday at 204p. Profits increased by 56 per cent to £21.5 million and the bank's chief executive, Mr Sean Fitzpatrick, said that acquisition opportunities in the US were being assessed. Other stocks slipped back somewhat from record highs. They included stocks such as Smurfit, on a 272p record high last week following merger talks between JS Corp and Stone Container, which shed 10p on Tuesday in good volumes and dropped to 259p by the market's close yesterday. Fyffes, also starting the week on a record peak of 200p following support from British analysts, made further gains to 210p on Tuesday before closing down marginally to 209p yesterday. Elan entered the week riding high on the Nasdaq at $62 3/4, after the pharmaceutical company's announcement of the acquisition of Neurex; by yesterday's close of the Irish market, it stood at $62 7/8, with its Dublin price quoted at £44.55. Barlo, the plastics and radiator firm, also hit a new high of 100p during the week while Esat beat its own record on the Nasdaq to reach a new high of $37 1/4, easing off as the week wore on to end at $34 3/8.
Towards yesterday's close, there was some belated trading in Fitzwilton following news of the planned £135 million offer by Dr Tony O'Reilly and Mr Peter Goulandris for the industrial holding company, possibly leading to a 50p per share buy-out. Fitzwilton's results, out on Thursday, showed a loss of £7.6 million in 1997 including a drop in its operating profits at its Wellworth and the Renicks manufacturing operations of £6.8 million to £11 million. In other company news, it emerged that the Serious Fraud Office in Britain was investigating the irregularities discovered at Powerscreen's subsidiary, Matbro. Kingspan had a disappointing end to its bid for Matsec but IWP was happy, announcing the acquisition of the British household goods Jeyes Group for £51.3 million sterling.
