Market Report - Dublin

With European markets falling back from their early highs, the Irish market struggled to make much progress in thin trading yesterday. Even the bigger-than-expected cut in interest rates failed to stimulate any trading in the financial shares, most of which drifted lower. An afternoon recovery on Wall Street after the New York market opened lower failed to provide any stimulus.

In London the FTSE 100 index gave up most of its early 2 per cent gains as dealers took fright at the earnings outlook, especially with a host of blue-chips reporting next week, including British Airways, British Telecom, Ladbroke, Cable & Wireless, CGU and Telewest.

The only real action in Dublin was in CRH which jumped 20p to 980p with some solid demand for the stock.

Financials were unchanged to lower, despite the rate cut, with AIB off 1p on 934p, First Active 10p lower on 340p, Irish Life off 10p on 558p and Irish Permanent 9p lower on 926p.

Bank of Ireland, which reports interim results next week, was unchanged on £12.50. Analysts have pencilled in pre-tax profits of around £320-£325 million, excluding the £153 million exceptional gain on the sale of the minority stake in Citizens Financial.

Greencore was unchanged on 275p as US investment group Putnam disclosed that it has bought another 220,000 shares in the past week to take its stake to 6.2 per cent.

Fyffes was 3p firmer on 123p as the market indicated its relief that the group's main rivals - and not Fyffes - were likely to be severely affected by the Central American hurricane.

Arcon remained in demand on 25p on good drilling results and its new joint venture in the midlands with Noranda.

Elsewhere, Irish Continental gained 15p to 785p, Kerry was 10p higher on 900p while Jones gained 15p to 220p.

Marlborough jumped 21p to 211p but Rapid Technology went the opposite direction and fell 30p to 74p in a late deal for no immediately apparent reason.

Smurfit gained 3p to 121p. Powerscreen was unchanged in Dublin but up 8 1/2p to 119p sterling in London, with the market indicating its approval of Mr Brian Kearney's appointment as the new chief executive.