Bank of Ireland was once again the flavour of the market and powered past arch-rival AIB to take the number two position in the market hierarchy. Dealers reported heavy demand from overseas investors, who were bidding aggressively for lines of up to 500,000 shares. One broker said that the appearance of a new bidder, thought to be American, in the afternoon session was the catalyst that drove Bank of Ireland shares up 40 cents to a close of #11.80.
Bank of Ireland is seen by overseas investors as an inexpensive stock relative to its peer group - "a solid play", as one broker described it. The appointment of new chief executive Mr Michael Soden is another factor, as is speculation that it might come under the spotlight from Mr Soden's former employer, National Australia Bank. "In nervous markets, Bank of Ireland is seen as a good place to be," commented one dealer.
As Bank of Ireland rose, AIB was 9 cents easier on #13.11 while Irish Life traded in size, edging a cent higher to #14.13. First Active reached its best level for almost two years, gaining 8 cents to #3.00.
CRH has been under some pressure in the past few days. An early rally yesterday soon ran out of steam, closing down 37 cents on #19.63. Heavy trading in Eircom at #1.26 - more than 3.5 million shares - was nothing more than arbitrageurs closing their positions. "They're taking their money now at #1.26 instead of waiting a few months for an extra cent from Valentia," commented one dealer.
Food stocks remained busy, boosted by the Kerry/Golden Vale affair. Glanbia was the best of the group, closing up 6 cents on #0.97, while Greencore was 5 cents higher on #2.65. Golden Vale itself edged up a cent to #1.46 while Kerry regained some of Wednesday's losses and was 25 cents higher on #13.25. Waterford Wedg- wood edged a cent higher to #1.10 as Commerzbank began coverage of the stock with a "buy" rating and a #1.53 price target.
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