SHARE prices in Dublin and on Wall Street jumped ahead to record levels during this week all though turnover was fairly thin. Equities were boosted by the prospect of cheaper fuel following the resumption of Iraqi oil sales, reinforcing optimism about steady US inflation and interest rates.
The announcement that Iraq and the United Nations had signed an agreement to let Saddam Hussein sell oil to buy food and medicine is expected to reduce petrol prices worldwide.
Rising energy prices had been a leading culprit in the recent financial market inflation Jitters.
Late in the week, profit taking set in London and Wall Street as investors locked in profits after bond markets began to fall.
Financial shares bounced back after recent consolidation, as bond prices improved on Wall Street.
Industrials also saw a good level of interest. CRH had a particularly good run on Tuesday when more than one million shares were traded on the London market. On the same day, 2.4 million Smurfit shares were traded in London and 2.7 million on Wednesday following buoyant trading in JS Corp stock on Wall Street.
Booming prices on world dairy markets last year have produced record profits of £20.8 million for the Irish Dairy Board which is owned by the agricultural co-operatives. Kerry went from strength to strength and hit new high ahead of the conversion of a quarter of the parent co-op's shares into plc shares later this year.
But dairy stocks drifted as the market took the view that the 3p cut in the milk price was not enough and another 3p would come off milk, possibly for June milk deliveries.
Golden Vale fell after Minister for Agriculture, Mr Yates said that the company had been investigated for alleged EU milk quota irregularities.
Talk of share purchases by Mr Jim Flavin, chief executive of DCC, interested dealers later in the week. He made a £580,528 profit after spending just over £362,500 to increase his stake in the company to 2.63 per cent. He exercised options to buy 200,000 DCC shares at loop each. In addition, he paid 99.8p per share for 162,830 shares which were allocated to him around 10 years ago.
New Ireland jumped to new highs on continuing speculation that Union Assurance de Paris may soon move to buy out the 17 per cent minority share holding.
Green ran up as company broker Davy upped its forecasts in the light of the £30 million his issue and £37 million British acquisitions. Davy has increased the 1996 profit forecast for Green from £5.8 million to £7.2 million and for 1997 form £7.7 million to £10.4 million.
Bula called a third extraordinary general meeting in as many months as it continues to try to oust two of its Russian directors.
Bond markets had a quiet weak after recent heavy volumes. There was little interest from overseas investors who are sitting on the sidelines, traders said.
A £75 million tap of the 10 year benchmark was well received on Thursday, pointing to continued good underlying demand.
