External events dampen recovery of market

External events took over yet again yesterday to dampen the recovery made by the Irish market following Tuesday's dismal performance.

While the day started off quite well, US inflation numbers turned it into what one trader described as a day of two halves. "Company news is doing little to drive the market at the moment," he said. "It's all about external economic issues."

The US inflation numbers came in above expectations, boosted by higher energy costs, prompting concerns that interest rates may continue to rise.

The Iseq ended the day up 59 points at 7,013.27 after weak markets in the UK and other parts of Europe dragged it down from its daily high of 7,047.72.

The financials put in a mixed performance on decent volumes, with AIB rising 50 cent, or almost 3 per cent, to end at €17.25. Bank of Ireland was also a gainer, up 21 cent, or 1.6 per cent, at €13.31. Anglo Irish Bank fell, however, losing six cent, or 0.6 per cent, to €10.74. Irish Life & Permanent was down five cent, or 0.3 per cent, to €17.25.

A rumour that Royal Dutch Shell was interested in acquiring Irish exploration group Tullow Oil failed to impact the share price significantly, with the company denying the comment. Tullow said it was not aware of any takeover approach and such a move would not be welcome.

The stock was down 10 cent, or 2.2 per cent, to €4.40 after rising to €4.55 earlier in the day.

One of the biggest losers was Greencore, though volumes were light and the stock went ex-dividend. One trader said fund managers were selling out after discovering it had no immediate plans to sell off its Carlow sugar plant in one go. It fell 19 cent, or 5 per cent, to €3.58.

Paddy Power was another negative mover, ending down 30 cent, or 2.4 per cent, at €12.

Kingspan had a good day, rising 29 cent, or 2.4 per cent, to close at €12.44.

CRH put in a brave performance despite its exposure to the US market, ending up 40 cent, or 1.7 per cent, at €23.30.