Food sector bucks downward trend in financials

Market ReportShare prices in Dublin were weaker again yesterday with the leaders all largely moving into negative territory.

The banks were under pressure. Anglo Irish Bank remained weak throughout the session with some buying support materialising before the end of the session.

The stock, which has lost ground on selling pressure this week, shed two cent yesterday to end at €13.20, with more than two million shares changing hands.

AIB lost one cent from €19.54 to €19.53. Bank of Ireland was also affected by the weaker tone with the shares losing 12 cent to end at €15.15.

Irish Life and Permanent faired better and moved over the €20 level to end at €20.05, seven cent better on reasonable volume.

Otherwise CRH was lower, with the shares dropping five cent to €28.70.

Some of the food sector stocks managed to buck the downward trend with Greencore and Kerry putting in the strongest performances. Greencore moved ahead to close at €4, up five cent, a gain of more than 1 per cent. Dealers said investors were beginning to focus on the group's property values.

Kerry shares also gained close to 1 per cent on the day, climbing from €19.45 to €19.63.

Fyffes also found itself in positive territory, adding two cent to €2.22.

Glanbia however moved in the opposite direction, falling from €2.58 to €2.53, a drop of almost 2 per cent.

Ryanair also made progress with the shares adding three cent to end at €7.65. Now that FL group has placed its 16 per cent in Ryanair's rival, EasyJet, brokers expect that investors will refocus EasyJet's relative valuation, particularly against the Irish carrier. Ryanair has been trading at a 26 per cent discount to EasyJet on a price to earning basis for 2006 and at a 22 per cent discount for 2007. Brokers now expect that Ryanair could significantly outperform easyJet in the coming months.