Exploration sector thrives as investors dig for profits

DUBLIN MARKET REPORT:  Iseq:3,038.21 (+60.28)  Settlement date:September 9th

THE FIRST week back after the the traditionally listless holiday season ended with an "exceptionally quiet" day on the Dublin market, one broker reported. However, the Iseq index of Irish shares succeeded in staying above the 3,000 mark, and added another 2.02 per cent yesterday to finish the week at 3,038.21.

The exploration sector was one of the few to display sharp movements on the day. “All of those stocks moved up quite aggressively,” a broker said.

Ormonde Mininggained almost 29 per cent – or two cent – to close at 9 cent. Volumes traded in the stock were more than 10 times heavier than usual. Although there was no stock specific news prompting this movement, it is believed that investors were speculating that Ormonde could be "the next Glencar", which has had a takeover offer from Gold Fields.

Tullow Oilwas also up on the day, rising more than 2 per cent – 25 cent – to €12.16.

Elsewhere, fruit importer Fyffesannounced a strong set of first-half results and, perhaps more importantly from an investor perspective, it upgraded earnings forecast for the full year for a second time. The stock has been enjoying a strong run since the spring. At the start of March it was trading at around 16 cent, but by Monday of this week it had more than trebled in value, reaching 49 cent. Although the stock bounced in early trade on the back of the strong set of numbers yesterday, it came off in the afternoon and by the close had fallen more than 2 per cent – or one cent – to finish at 45 cent.

There was fairly heavy trade in C&C, which rose by more than 7 per cent to €2.60.

Meanwhile, index heavyweight CRHrose as the cement industry regained a little bit of traction, and finished up 3.5 per cent – 58 cent – at €17.32.