Equities show gains but dealers remain uncertain

Share prices rose by 0.12 per cent on the Dublin exchange yesterday, reflecting positive sentiment throughout Europe as traders responded to a rebound in US tech shares after heavy falls on Monday.

However, one trader said continuing swings on the technology-heavy Nasdaq exchange in New York were causing uncertainty in Dublin and yesterday's rise was not as strong as that experienced elsewhere.

The Dublin market was likely to suffer from a lack of liquidity and volume for the remainder of the week as many traders were on holidays, he said. This drove many stocks lower yesterday.

Financial stocks lost momentum with Bank of Ireland finishing 18 cents weaker at €7.33. Irish Life & Permanent, which has revealed plans to close a number of branches throughout the State, lost 15 cents to close the day at €9.25. "It was more the absence of buyers really than any particular selling interest," another trader said.

There was little solace, either, for Eircom's army of small investors with the share declining in heavy trading by a further 15 cents to €3.70, 20 cents off its flotation price. Eircom shares were trading at €3.50 on two occasions yesterday.

CRH also suffered, losing 38 cents to close at €18.57, as did Fyffes, which was seven cents easier at €1.93 at the end of the day. Food group Greencore, of which financier Dermot Desmond now owns almost 10.3 per cent, closed five cents weaker at €3.05.

AIB beat the trend in financials finishing 10 cents stronger at €10.95. Elan rose by €2.18 cents though movement of its stock tends to be greater than others on the index. Smurfit also finished ahead, rising by 71/2 cents on the back of positive results from its US subsidiary Smurfit Stone to close at €2.525.