WEAKER financial shares dragged the Irish market sharply lower in line with the tone on international equity markets but the market did manage to close just above the 2300 level on the ISEQ. Turnover was pretty thin although there was some busy dealing in Smurfit.
Among the financials, AIB lost 3p to 347p while Bank of Ireland was 4p lower on 441p. Irish Permanent was unchanged on 400p but there was more interest in the IP's 41/2 year bond issue which was upped from £50 million to £60 million after strong demand. The bond was priced to yield 40 basis points over five year Government gilts and about a third of the £60 million is thought to have been taken up by overseas investors.
Among the industrials, Smurfit was 2p lower on 148p after JS Corp dived $0.75 to $11 over night. CRH eased 2p to 501p but is still well bid at 500p and there seems little likelihood of any serious weakness in the stock. Anglo Irish Bank was lp easier on 61p as Morgan Stanley disclosed that it has been a recent seller, with its stake down from 8.1 per cent to 7.9 per cent.
Arcon was 21/4p higher on 251/2p after a good set of drilling results which seem to have extended the Galmoy mineralised area. Greencore drifted off 2p to 552p but remains well bid while Fyffes was 2p firmer on 107p and set to trade in a very narrow range. Avonmore gained 3p to 132p although Kerry came off its high and fell 10p to 505p.
Apart from the Irish Permanent bond, there was little activity in bonds with prices largely unchanged as the market waits to see how the latest US bond auction goes.
