Eircom climbs 8 cents with 16 million shares dealt

Dublin Report: Eircom led the way yesterday, helping the industrials outperform financials on the Irish market.

The former State telecoms group was boosted by a report from broker Lehman, which initiated coverage with a target price of €2.60, well ahead of current expectations.

More than 16 million shares traded in the stock, with international buyers prominent, according to dealers, as the price rose eight cents to close at a new high of €1.93.

The performance was also boosted by expectations of a positive update on costs, mobile market re-entry and broadband strategy when the company reports third-quarter figures next week.

Buyers were also chasing Ryanair in the aftermath of particularly bullish briefings at investors roadshows. More than 12 million shares dealt as the company added 21 cents, or 3.55 per cent, to close at its session high of €6.50. In a note yesterday, company broker Davy set an €8 target for the airline.

Jurys Doyle was 20 cents stronger on €13.45 on the back of rising sentiment for the group and the hotel sector in general.

There was good two-way trade in CRH, which closed up five cents on€2.50, having hit €2.57 earlier in the day.

By contrast, the financials were quiet with both Bank of Ireland and AIB slipping three cents despite some late session interest. AIB closed on €15.40 while its rival ended the day on €12.22.

Anglo Irish Bank had one of its quietest days in months, with fewer than 700,000 shares changing hands. It closed at€18.60, down 12 cents. Irish Life & Permanent also struggled for attention, giving up five cents to €14.05.

Fyffes and DCC, which are locked in a High Court insider trading dispute, both lost ground. DCC shed five cents to €17.25, while Fyffes was a cent off at €2.02.

Another 160,000 shares in NTR were sold yesterday with the price rising a euro to €27.