Investors continued yesterday along the lines established earlier in the week, with banking shares falling while technology shares rose. The ISEQ index fell 16.95, or around 0.3 per cent.
Investors said financial shares were weaker due to international sentiment, including expectation of weak bond markets and concerns about the future direction of Britain's Lloyds Bank. Bank of Ireland, which has significant operations in Britain, fell more than 6 per cent, ending the week at €6.50, down 37 cents. AIB, which has less exposure to the British market, fell just 2 cents to €8.70. Irish Life & Permanent was down 5 cents to €7.90.
"The banks are in the absolute doghouse at the moment," one dealer said. "But, once again, techs and telecoms are the only circus in town . . . For example, Baltimore [Technologies] is now bigger than Bank of Ireland in market capitalisation terms." The Irish-owned firm is listed on New York's Nasdaq exchange and on the London market.
In Dublin, Eircom continued its upward climb, ending the day 12 cents higher at €4.68. Analysts said the main demand for the share came from international investors, who were buying it "as a proxy for the Irish success story" and because of sentiment in the telecommunications sector in the wake of the Vodafone/Mannesmann deal.
Another technology company, Horizon Technology Group, saw its shares rise 35 cents to close at €11.35.
Smurfit closed at €2.65, down almost 5 cents. One dealer commented: "The paper sector in the United States has drifted, and there was a lack of inspiration from Michael Smurfit at his annual presentation to the Dublin fund managers at the K Club last night."
Benefiting from the launch of its Internet strategy, and the high valuations placed by investors on such operations, Independent News- papers climbed 55 cents, closing at €10.80
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