MARKET REPORT - DUBLIN

THE Dublin market fell back a little yesterday, despite reasonable demand for the main bank stocks.

Dealers said the banks continue to drive the market after Bank of Ireland sparked interest following the completion of its takeover of Bristol & West Building Society in the UK.

The market is simply marking time, in line with the UK. Dealers said they can see little reason to get into the market at the moment and are hoping for an impetus to come from somewhere.

Bank of Ireland ended up 2p at 680p, while AIB rose 1p to 463p. Irish Permanent finished flat at 603p.

However, the major industrials were easier. CRH closed 5p lower at 643p a share while Smurfit also lost 1p to 157p.

There was some performance in the mid cap stocks. Independent gained 5p to 350p. Waterford and Avonmore continued to change hands ahead of the announcement about a possible merger. Traders said there was no "tremendous optimism" in the market about a deal.

Arnotts failed to trade after AIB - announced a large disposal of shares.

The bond market also weakened in later afternoon trade. The spread, or difference, between Irish and German 10 year bonds widened slightly.

Dealers said most activity was in switching, with few major plays.

The 6.5 per cent bond due 2001 closed down at 102.11, yielding 5.853 per cent from 5.826 per cent. The 8 per cent due 2006 closed flat at 108.74 to yield 6.592 per cent from 6.592 a day earlier.