OVERALL the Irish equity market remained at steady levels, losing slightly in midweek. In contrast, Britain and the US raced ahead, with the Dow now heading for the 8000 mark and the FTSE ending the week on a record high.
Nevertheless, it was generally a strong week for trading, with Ryanair putting in another good performance. Much of the demand for financial stocks in particular came from oversees with the main banks doing well.
The US strength, fuelled by weak retail sales which dampened down expectations of a rate rise, also helped Smurfit, although CRH had a mixed week, doing slightly better towards the end.
Dealers said Greencore steadied itself and saw good volumes and there was good interest in the smaller stocks.
The bond market was a much weaker performer, with EMU fears and general political uncertainty contributing to a sell off and rising yields. Many investors moved out of Irish bonds and into US Treasuries, although the market picked up yesterday as investors came to believe that some sort of deal will be done on the Stability Pact at this week's EU Summit in Amsterdam. A deal in Amsterdam is vital to the market next week.
The rising US market benefited Smurfit and a vigorous defence of environmental policies from the chairman, Dr Michael Smurfit, also helped boost the share. He added that he was optimistic about future price rises in paper.
Pharmaceutical company Elan also did well, with interest rising after it announced that it will invest up to £3 million to take a to per cent stake in Ethical Holdings, the British company which is to be floated on the London stock exchange in early June. The stake is the latest in a series of acquisitions for the company - it recently bought the Irish health care group Clonmel Healthcare.
Grafton, the Woodies DIY group, was also on the acquisition trail, taking over Abbey Rose, a builders supply company in London. This brings the value of its acquisitions so far this year up to £11.75 million.
On Friday activity picked up again as Irish Marine Oil announced the acquisition of Minco Ireland and Irish Base Metals for 14 million new shares, or £2.1 million. It is effectively a reverse takeover as the two companies, owned by Juno, a public Bermuda investment company, will end up with 43.7 per cent of the enlarged group, by far the largest share holding.
On the same day, IWP International, the industrial holding company, bought a majority stake in a British cosmetics company Constance Carroll Holdings, for £38.5 million.
Waterford Foods ended the week well, following confirmation that the proposed merger with Avonmore Foods has been endorsed by the Irish Farmers Association.
But Navan Resources saw its shares slip after the company announced a sharp fall in 1996 profits. The company said 1997 would be a year of consolidation at its operations in Bulgaria while it will "reevaluate" future plans in Hungary.
