Banks give ground on a day of mixed fortunes

Dublin Report:The Irish stock market moved back into positive territory yesterday although the performance of individual stocks was mixed.

Grafton and Bank of Ireland proved the main focus of investor attention as the former issued a trading update and the latter held its annual meeting.

Shares in Grafton dived by more than 3 per cent in early trade to a low of €8.88 on the day as the group said it faced greater competition in its Irish DIY market and a softening market in Britain. However, the shares later rebounded to close the day 14 cent, or 1.5 per cent, lower at €9.04 as the company said it remained on track to meet market expectations.

Bank of Ireland shares were little moved following the annual meeting at which shareholders were told the bank was "generally comfortable" with analysts' forecasts. The stock lost five cent to €13.35 as its peers also gave up ground.

AIB closed four cent lower at €17.63, Anglo Irish Bank gave up seven cent to €10.25 while Irish Life & Permanent finished down five cent at €14.37. However, there were a few bright spots. Shares in Elan added 52 cent, or 9 per cent, to €6.10 as NCB Stockbrokers said it expects multiple sclerosis drug, Tysabri, to return to the market as a monotherapy in 2006.

Drink and snacks group C&C continued to advance, adding a further 12 cent, or more than 3 per cent, to €3.95 amid continued optimism about the rollout of its Magners cider brand in London.

DCC continued to bask in the positive sentiment that followed Tuesday's positive AGM statement, gaining a further 35 cent, or 2 per cent, to €17.35.

Eircom, which has been under pressure in recent days amid fears of a rights issue to fund a bid for Meteor, recovered some poise yesterday to add two cent to €1.76. Ryanair also managed a modest gain of two cent to €6.47 while Irish Continental Group gained 10 cent to €9.90 as it restated its 2004 results to comply with new accounting standards.