Japan's woes put a dampener on international markets and the ISEQ in the run-up to the weekend after it peaked at 5186.06 on Tuesday, following clawbacks on the financials' losses last week.
AIB's mid-week high was 980p, in contrast to yesterday's closing price of 963, while Bank of Ire- land's peak this week, at £13.85, was 47p higher than yesterday's £13.38. The three-day slide into the weekend followed a strong opening on the back of Wall Street's rally due to a positive US employment report and the announcement of the $34 billion merger of Norwest and Wells Fargo on Monday. However, a seven-year low for the yen against the dollar was reached and a contracting Japanese economy signalled the down spin for the international markets.
The potential for the disruption to the region was signalled as the governor of the People's Bank of China appealed to Japan to stabilise its currency.
Wall Street led the way on Tuesday as the sobering Japanese news was matched with apprehension of what the Federal Reserve chairman, Mr Alan Greenspan, might say in his congressional report. In the event, although Mr Greenspan's comments were reassuring, the Dow Jones slipped back on fears of reduced company profits. The reaction to the decline of the Hang Seng filtered through to international markets. The ISEQ took its cue from London and Irish financial shares yielded to further profit taking. The outlook looks bleak going into next week as further sobering news from Asia is digested. Closer to home, the latest inflation figures, showing a 2.7 per cent rate in May, gave cause for reflection but the Irish market's bull run was still evident, with Ryanair announcing pre-tax profits of £37.1 million, slightly ahead of expectations. Yesterday Ryanair's share price closed 10p up at 530p. On the Nasdaq it stood at $35.50 at the Irish market's close, as the airline announced new promotional air fares from London to St Etienne, France, and to Kristianstad, in Sweden. In an otherwise quiet week for company results, Athlone Extru- sions announced pre-tax profits of £2.2 million, as expected. Yesterday the plastics company shed 2p off its share price, going to 98p, after gaining a penny on Thursday.
Speculation that Bank of Ireland was preparing to top Halifax's £780 million bid for Birmingham Midshires Building Society remained unconfirmed. ITG Group announced on Monday it had doubled its private payphone market, becoming second to Telecom Eireann, after it took over Trexco Communications for £1.6 million.
Powerscreen's prodigal son-like return to good faith was the surprise of the week, after it breached the £1 sterling market yesterday with profit-taking there for some of those who bought shares on Tuesday when they languished as low as 46.5p sterling. Continued interest is expected in the share price, although dealers warned the stock would be volatile in the short term. In other news, Green Property announced yesterday that its offer for Trafford Park Estates has been extended and the next closing date will be June 26th.
