Iseq follows Europe up 1.5% on day of light trading

DUBLIN REPORT: Iseq: 2,990.82 (+44.85 ) Settlement date: July 1stSTOCK MARKETS "trended sidewards" yesterday, according to equity dealers, on what was a quiet trading day for the Iseq index of Irish shares and across the major European indices.

The Iseq closed up 1.52 per cent in line with the likes of the FTSE, the German Dax and the French Cac. This was the first rise in European markets in five days, but the small volume of shares that exchanged hands meant that the gains were not a convincing reflection of the market mood.

The talking point on the Dublin market in recent months has been the Bank of Ireland rights issue: now that that’s over and done with, there are few catalysts for equity action. Nevertheless, Bank of Ireland’s trading volumes are beginning to come back since the stock placing and are showing tentative signs of stability.

B of I rose almost 3 per cent to 73 cents, reflecting the trend for financial stocks across Europe.

AIB climbed 2 per cent to 99 cents after it appeared the bank would indicate further news of bids for its Polish subsidiary next month. There has been a lack of newsflow around Irish Life Permanent of late, dealers noted. It fell again, closing down 2.3 per cent at €1.64.

The construction sector had a strong day, with CRH, the largest stock on the Iseq, rising almost 2.5 per cent to €18.10.

A broadly positive trading update from the UK housebuilder Taylor Wimpey yesterday lifted the Irish stocks that have interests in that sector: Grafton and Kingspan both added half a per cent.

Drinks group C&C rose 1.3 per cent to €3.35 on the back of encouraging Nielsen data for the off-trade sector in Britain. Magners cider sold 4.1 million litres, an off-trade record for C&C, from May 15th to June 12th, according to numbers released on Friday, as the World Cup, good weather and price cuts all boosted C&C’s fortunes.