Market shrugs off US opening over Asian market concerns

THE stock market firmed in moderate pre-Christmas trade as the market shrugged off a weak start on Wall Street amid renewed concerns about Asia.

US stocks fell by more than 50 points at the opening, principally on sales of bank shares from investors jittery about prospects in Asia.

Fears that South Korea's economic crisis may yet worsen sent Seoul stocks to a record one-day percentage loss yesterday and most regional stocks markets were unable to shake off the gloom as the Seoul index ended down 7.5 per cent, while the Korean won slumped against the dollar.

But in Dublin, share prices were generally steady to slightly firmer and the ISEQ index of Irish shares firmed by 19.66 points or 0.51 per cent to close at 3,900.82.

"The market is quite firm, up about half a per cent. We have seen reasonable interest across a range of stocks," one trader said. Dealers said the index was underpinned by a 117p rise to 3459p in the Elan share price which has recovered strongly after a sell-off in the wake of its £268 million acquisition of Sano Corporation last week.

"The share price probably came back more sharply than expected and people are beginning to feel that it was oversold," one trader said.

Both of the main banking stocks were a bit firmer with AIB gaining 2.25p to 645p, while Bank of Ire- land added 5p to 1015p before closing unchanged at 1010p. Meanwhile, Irish Life jumped 7p to 362p.

In the industrial sector, CRH shed 5p to 785, Smurfit was down 2p at 184p and Greencore was unchanged at 335p.

Among second line stocks, Jones Group added a further 10p to 160p after gaining 25p on Monday. The share price improved after the company announced it planned to sell its shipping and manufacturing divisions last Friday and said it would distribute surplus cash among shareholders.

European Leisure, which announced it was selling its amusement machine manufacturer Maygay Machines for £16.5 million sterling, was unchanged at 140p.

The Irish Stock Exchange will open for a half day today before closing until December 30th. In London, trade resumes on December 29th.