The fall in the Dublin market on Monday was more than offset by sharp rises on Tuesday and Wednesday when trading took its cue from confident buying in Wall Street. This renewed confidence followed the Federal Reserve chairman's address to Congress where he showed his faith in further steady growth in the US economy which will be helped by low inflation.
In contrast to his "irrational exuberance" remarks of last year which set off a descent in the markets, Mr Alan Greenspan's speech on Tuesday led to the Dow Jones breaking the 8100 barrier by Thursday, while the ISEQ moved ahead between Tuesday and Friday. The ISEQ ended the week 2.7 per cent ahead on the week at 3.640.71.
This week saw the final agreement on the merger between Avonmore and Waterford Foods which will create an operation with turnover of £2.5 billion. Avonmore Waterford will be the largest dairy processor in Ireland and Britain and one of the biggest in Europe. The food companies shares reflected market approval of the merger with Avonmore up 10p in the week to 310p and Waterford gaining 12p to close at 177p.
The dairy industry received a further boost when the chairman of Donegal Creameries, Mr Lexie Tinney, said he expected a full share listing on the Irish Stock Exchange by the year's end, after announcing pre-tax profits of £2.2 million, up by £149,000 on the previous year.
Elan announced that its second quarter profits were up by 43 per cent compared to the same period last year, while after-tax profits rose to £27 million for April-June compared to £19 million in the same 1996 quarter.
The oil exploration company, Aminex, said it would raise £12.8 million through a placing and open offer of new shares, increasing its investment in the Russian Federation. Meanwhile, Kenmare Resources indicated at its annual general meeting that returns were expected to be up from their graphite mine in Mozambique and through gold exploration in the former Yugoslavia.
The main financials were in strong demand. AIB was up during the week although its US subsidiary, First Maryland Bancorp had marred profits because of losses on credit card loans. Profits after tax were still up by a healthy 10 per cent to $35.8 million for the three months to end June. Bank of Ireland, Anglo-Irish Bank and Irish Life also moved ahead in a rising market.
Movements of the Irish currency sounded the only discordant note, with the pound slipping against sterling to its lowest level since 1989, resulting in fears that a bout of speculative raids may follow.
