Leaders end lower in thin trade

THE New York market might have bounced back by more than 100 points by the time the Irish market closed and London might have hit its fifth consecutive all time high, but the Irish market was oblivious with share prices drifting lower in very dull trading.

Most of the leaders drifted lower in thin trading with Bank of Ireland off 4 1/4p on 707p and AIB down 3 1/2p on 479 1/2p. Weakness in the US paper sector dragged Smurfit lower and the share dropped 4p to 167p, while CRH was 6p lower on 674p.

Among the food stocks, Kerry was 15p higher on 660p. The spin out of 13 per cent of the equity worth £140 million to shareholders of Kerry Co op finally gets under way over the next few weeks, a move that will reduce the co op holding in Kerry Group from 52 per cent to 39 per cent.

Avonmore was 2p easier on 235p, despite the generally positive response to its acquisition of Beni Foods in Britain for almost £55 million. Analysts expect Avonmore to wring substantial cost savings from the new acquisition and Goodbody suggests that it is worth an extra 0.5p to earnings per share.

Waterford Foods was 5p higher on 95p, but is still well off the 117p value put on the shares by the merger proposal from Avonmore.

The non dairy food shares were mixed with Greencore up 1p on 344p as beet growers voted by a whisker to accept the company's proposals on sugar beet prices.

IAWS was 5p lower on 235p - both IAWS and Greencore have been suggested as possible bidders if troubled Dalgety decides to spin off its British four business.

Elsewhere, Grafton - seen as a likely bidder, hostile or otherwise, for British Dredging - was 5p higher on 915p. Independent regained 2p to 343p, McInerney was 2p higher on 68p, while Unidare jumped 20p to 190p from an oversold position.