C&C helps market add to recent gains

Dublin report: The Irish market added to its recent gains yesterday, closing another half a per cent higher.

The main contributor was drinks group C&C, which jumped almost 8 per cent after British chancellor Gordon Brown raised the duty on cider by only 1p. There had been concerns that he would increase it further to bring it into line with the duty on beer.

The shares put in what one dealer described as a "relief rally", wiping out the 5 per cent they lost on Tuesday after a spate of profit taking. The stock closed up 85 cent, at €11.60 as 4.7 million units changed hands.

Ryanair was also strong on decent demand - almost 7 million shares traded. Dealers said the stock was benefiting from the lower oil price and the likelihood that increases in its baggage charge will add to profits. In a note to investors, NCB analyst John Sheehan estimated the higher baggage charge would add 6 per cent to earnings in the year to the end of March 2008.

Ryanair shares closed up 23 cent, or 3.9 per cent, at €6.16.

Tullow Oil was also a gainer following a results statement, which outlined the group's intention to start producing oil in Uganda in the early part of 2009. The shares rose 2.3 per cent, or 12 cent, to close at €5.43. In London, where most of the trading takes place, Tullow shares were up 2.6 per cent, at £3.59.

Independent News & Media also benefited from a positive results statement, rising 5 cent, or 1.6 per cent, to €3.16 after reporting higher profits and growth in advertising and circulation revenues.

Bank of Ireland did not fare so well. Its shares dropped 2.6 per cent, or 45 cent, to €16.70 despite saying that full-year results would be in line with expectations. Dealers said the lack of an upgrade left the market "non-plussed."