Stocks stage recovery as panic selling subsides

Stocks in Dublin staged a recovery yesterday after a mauling a day earlier was prompted by US jitters and the foot-and-mouth outbreak in Co Louth.

Buoyed by a rally in late trading on the US exchanges on Thursday, the ISEQ closed 2.58 per cent stronger at 5,185.75. This was in contrast to trading on Thursday when almost €3 billion was wiped off the value of shares.

Trading volumes were thin on a day when investors eased back from panic-selling of food and tourism stocks. Among the recovery plays were food groups such as Kerry, which closed up 60 cents at €12.40, and Golden Vale, which finished 13 cents stronger at 80 cents.

While sentiment against "overselling" a day earlier also nudged Glanbia eight cents stronger to finish at 58 cents, traders warned that the long-term impact of a foot-and-mouth epidemic was still unclear as the outbreak of the contagious and unpredictable virus was in its early phase only.

Other stocks riding the turnaround in sentiment included the hotel groups Jurys Doyle, which finished nine cents stronger at €8.20, and Ryan Hotels, which gained two cents to close at 72 cents. Ryanair added 21 cents to close at €9.60.

But there were losers too, yesterday. Although not listed on the Dublin exchange, traders spoke of "blood on the streets" in relation to Baltimore Technologies shares. The stock lost 30.60 per cent on the London exchange, closing at 104.5p sterling, after the company warned analysts of falling revenues.

Other techs had mixed results. Iona finished €9 stronger at €38, boosted by positive news in the US from its sectoral rival Tibco. Riverdeep lost 30 cents to close at €4.20.

Among the larger financial stocks on the Dublin index, Bank of Ireland notched up 35 cents to close at €8.60 and AIB finished 10 cents stronger at €10.48.

Elan, the largest stock on the exchange, gained €1.50 to finish at €53.50.