AIB and Elan activity propels market to another all time high

STRONG demand for Allied Irish Banks shares and a jump by Elan were the main factors behind another all time high for the Irish market yesterday, and there seems to be little reason to expect any weakness in the short term, bar some occasional profit taking.

AIB notched up a landmark when it broke through the £3.5 billion barrier for the first time when it hit 515p. The shares closed just below that landmark at 514p but was still up 7p on the day, with good demand for the stock on the London market where 1.7 million shares traded.

Elan is drawing demand from overseas investors, but most of the turnover in the share is in New York where the share was up 50 cents to $395/g yesterday. Elan's presence in the ISEQ means, however, that movements in the stock in New York are reflected in the value of the Irish index.

Elsewhere, the other financials drifted lower with Bank of Ireland down 4p on 733p while Irish Permanent was 2p easier on 643p. Industrials were mixed with CRH unchanged on 655p, Smurfit marginally easier on 187 3/4. Waterford Foods drifted back 3p to 122p with many in the market yet to be convinced that the merger will be approved by Waterford Coop shareholders. Avonmore did not trade from its overnight 251p.

Independent was 3p easier on 340p, Kerry was 5p higher on 655p while newcomer Qualceram jumped 8p to 165p although liquidity in this stock is very tight.