Positive media comments put Dublin ahead of Europe

DUBLIN REPORT: Iseq:2,796.96 (+1.92) Settlement date:September 20th

THE DUBLIN market outperformed its European peers yesterday with the overall Iseq index finishing up a fraction at 2,796.96 – a gain of 1.92 points, on a day when other bourses were in the red.

Traders said sentiment towards Irish equities had improved significantly after an interview given by billionaire investor Wilbur Ross to US financial news network CNBC. With Mr Ross so gung-ho about the possibilities of investing in Ireland, as part of a consortium chasing EBS Building Society, the volume of trades ticked up significantly.

Although Bank of Ireland finished flat at €0.69, market players said it had benefited most from this positive sentiment towards Ireland piped into trading rooms around Europe.

With Mr Ross so confident of his Cardinal consortium’s success, it was little surprise another bidder in the process, Irish Life and Permanent, was bid down 1.33 per cent to €1.634. Concerns about the capital-raising capability of AIB continued to drag on the stock, off 3.61 per cent at €0.72.

Convenience food producer Greencore was heavily traded and gained 4.02 per cent to close on €1.165, as defensive stocks continue to look attractive. Pharmaceutical group United Drug also traded way beyond its recent daily averages but this did little to move the share price which closed up just 0.46 per cent at €2.43.

Financial software provider Norkom, which released a profit warning on Monday, continued to suffer from negative sentiment despite chief executive Paul Kerley purchasing 60,000 shares. It fell another 6.25 per cent to €0.75.

In contrast, another financial software firm on the junior market, Newry-based First Derivatives, was one of the strongest performers over the course of the session. It added €0.50 or 14.29 per cent to finish on €4.00.