AIB recovery fails to prevent market spillage

Irish shares closed marginally weaker, going against the trend on international stock markets which generally ended higher.

The ISEQ index closed nearly 14 points lower but dealers said trade had been thin and there was a lack of stock specific news.

Most other European markets gained ground, encouraged by a strong start on Wall Street after weaker-than-expected producer price data helped calm fears over the outlook for US interest rates. The figures raised question marks over whether the US Federal Reserve would still raise interest rates at its next policy setting meeting on August 24th, helping both bond and equity markets to move higher.

Dublin, however, remained immune to the improved sentiment and the leading stocks put in a mixed performance. AIB resisted the general downward drift to gain 15 cents on the day and close at €11.95 (£9.41). But Bank of Ireland did not fare as well, losing 20 cents to €8.80 (£6.93) while Irish Life & Permanent held steady at €9.45 (£7.44).

Elsewhere, CRH had a good day, gaining 22 cents to €19.32 (£15.22) but Smurfit could only manage a more modest two-cent gain to close at €2.85 (£2.24).

Telecom Eireann slipped slightly to finish at €4.35 (£3.43), down five cents.

Clondalkin, which soared by 21 per cent on Thursday following the announcement that management may make a bid of €9 per share for the print and packaging group, added a further six cents yesterday to €8.30 (£6.54). Dealers said the market was now waiting for the next move from management.