Market Report - Dublin

Half-year figures from Bank of Ireland, DCC and Ryanair and the bid speculation swirling around Hibernian and Powerscreen failed to propel the Irish stock market to greater heights this week.

Instead, Irish shares ended a dull week just 0.9 per cent higher as a lacklustre performance overseas rather than domestic corporate activity set the tone in the Dublin market.

International stock markets have settled into a calmer phase of late but the US Federal Reserve rate-setting meeting next Tuesday should bring some life back to the markets as traders wait to see whether US interest rates will be cut. Dealers will also be keeping a close eye on developments in the Gulf as tension between the US and Iraq mounts.

At home, Bank of Ireland shares were one of the few features on the day, rising by 35p to £12.35 as brokers upgraded their full-year forecasts for the company following the release of better-than-expected half-year figures on Thursday.

Goodbody Stockbrokers is now forecasting full-year earnings per share (EPS) of 86.9p, a 13 per cent increase on its previous forecast.

AIB's shares rose by a more modest 4p to 985p but merger candidates Irish Permanent and Irish Life both ended weaker. The former dropped 5p to 895p while Irish Life gave up 11p to 563p.

Industrial shares were also generally down. CRH dropped 14p to 961p while Smurfit was down 4.25p to 116.75p. Industrial holding group DCC proved an exception to the general rule and its share rose by 15p to 520p, heartened by strong half-year results announced on Monday. NCB has revised its forecasts for the group upward after the figures which far surpassed market expectations.

The brokers said the shares represented "excellent value" and recommended them as a buy. The company also drew a positive response in Britain where Warburg Dillon Read rated the stock a "strong buy" and set a target price of 800p. "The stock didn't deserve to be below 400p and is seeing a bit of a recovery," one dealer said.

Independent Newspapers, which suffered during the week after company brokers Davy downgraded its forecasts for the company to nil growth this year and next, recovered some ground yesterday. The share price gained 20p to 250p after the company stepped in to put a floor under the share price at 220p on Wednesday.