The main focus for the week was on continuing problems in Asia. Large share sell-offs at the beginning of the week abated somewhat later following the concerted intervention from the US and Japan to prop up the yen.
Whether the buoyant mood lasts will depend on the outcome of US Deputy Treasury Secretary's, Mr Larry Summers meeting in Tokyo this weekend with deputy finance ministers from the Group of Seven industrialised nations, 11 Asian nations including China and officials from the IMF and World Bank. They will discuss support for the faltering yen in return for drastic reform in Japan to battle recession. While the US and Japan won admirers for the yen this week by intervening in the currency market, the policymakers gathering in Tokyo tomorrow will determine whether its three-year decline is over.
In the markets, pessimists appear still to outnumber optimists and are waiting to see strong words from the G7 and signs that Japan will stick to its reforms.
Despite this, volumes in the Dublin markets were quite low, although traders put this down to summer trading. However, some signs of encouragement were seen in an upward tick in bid interest for the banks, particularly the two large ones.
However, this was balanced by further concerns for Smurfit on worries about paper prices as a result of the Far Eastern turmoil.
News that Goldman Sachs is to float also provided some interest. The total value of the firm is thought to be around $30 million (£21 million) which means the initial public offering is likely to be in the region of $3 billion to $5 billion.
There was also some activity in Ryanair as it announced it intended to raise £50 million through an offering of new shares and confirmed plans to seek a listing on the London stock exchange to pay for the recently ordered new Boeing aircraft.
The airline's main shareholders - the Ryan family, chief executive Mr Michael O'Leary and Irish Air, the investment vehicle of chairman Mr David Bonderman - have indicated they intend to sell about £50 million of their holding. or about 6 per cent of the airline's capital.
There was some slippage in second-line stocks. Most results came in broadly in line with expectations. IWP International, the households products and distribution group, announced its £60 million offer for Jeyes had been declared unconditional as well as a 14 per cent increase in pre-tax profits to £25.6 million.
Dr Tony O'Reilly and his brother-in-law, Mr Peter Goulandris, received acceptances representing 74.5 per cent of Fitzwilton and the offer was extended for a further 21 days as 80 per cent acceptances are needed before the outstanding shares can be compulsorily acquired.
There was also a continuation of the small turnaround in Powerscreen's fortunes. It announced it would be releasing annual results in six to eight weeks. The group, which has already indicated it made a £65 million loss, said the energies of its auditors KPMG had been diverted because of the Matbro debacle.
There was negative news from Bula as it announced accumulated losses of £30.4 million at the end of 1997. Bula is in dispute with its Russian partners over exploration licences. IAWS, the agri-business group, sold its unoccupied site at Thorncastle Street, Dublin 4 for £4 million. Jones Group saw some movement after Monday's announcement of a 235p share buyback scheme.
Fyffes reported a 15 per cent rise in profit to £23.3 million in the six months to the end of April. The company has ruled out giving some of its £58 million in net cash to shareholders and says it needs the money to fund further acquisitions.
