Volatility forces market lower as shares retreat

The Irish stock market closed lower yesterday as many shares retreated after a strong performance at the end of last week.

Dealers said futures-related volatility had prompted several Irish stocks to "ramp up" sharply on Friday only to give up the gains yesterday.

The stocks affected included Independent News & Media, which closed 14 cent, or 5.3 per cent, lower at €2.49 after a strong run-up on Friday.

But traders pointed out that nothing fundamental had happened to alter the outlook for the stock and the move was mainly due to technical factors.

Ryanair was another to suffer in similar fashion, losing 16 cent or 2 per cent, to €7.81.

Amid speculation that it might be a potential buyer of Fresh Del Monte, shares in Fyffes lost three cent or 1.3 per cent to €2.30.

DCC also gave up ground ahead of the outcome of its High Court battle with Fyffes on Wednesday, losing five cent to €16.65.

Financial stocks generally drifted lower with AIB shedding 10 cent to €17.90, Bank of Ireland off 13 cent at €13.42 and Anglo Irish Bank down 12 cent to €12.15. Irish Life & Permanent lost 30 cent, or 1.8 per cent, to €16.13 as the effects of last week's trading statement wore off.

Only insurance group FBD gained ground, adding €1.05, or 2.9 per cent, to €37.20 after it said trading in 2005 had been strong.

CRH was another good performer yesterday, adding 27 cent or more than 1 per cent, to €24.42 while Grafton also made progress, closing 10 cent higher at €8.70.

Other movers included drinks and snacks group C&C, which finished seven cent, or 1.3 per cent, higher at €5.45.

But dealers said that volumes generally were relatively light as the Christmas season was beginning to have an effect.

In the exploration sector, shares in Pan Andean fell by close to 13 per cent on London's AIM after it announced that drilling at one of its Texan wells failed to find oil or gas.