Financials advance as results at AIB are welcomed by market

STRONG interest in financial stocks following the publication of AIB's results helped the market push ahead.

Better-than-expected dividend growth at AIB was welcomed by investors, although some analysts were revising down forecasts for the current year on fears that margins might be squeezed further.

AIB was 5p stronger at 352p, while Bank of Ireland put on 3p to close at 439p. Anglo Irish Bank was up 1/2p on 60 1/2p.

According to brokers, the market was subdued in tone, apart from the interest in the financial stocks.

CRH was up 8p at 503p, while Smurfit continued to drift, falling 2p to 146p as news of a small acquisition in Portugal leaked out. The £2 million purchase is the group's first venture into Portugal and further expansion is planned.

Shares in Fyffes advanced from 103p to 110p sterling which must be good news for the Fyffes directors, most of whom have recently bought shares at 107p. The chairman, Mr Neil McCann, and his two sons, David and Carl, bought 5,000 shares each at 107p last Thursday. Fellow director Mr Patrick McNamee also bought 5,000 at the same price, while Mr John Gemon bought 3,500.

AIB has notified the exchange that its stake in Waterford Wedgwood was advanced to 7 per cent following its recent purchases. Waterford Wedgwood shares moved ahead from 59 3/4p to 60p.

Northern Ireland Electricity recovered slightly following Monday's sell-off but did not trade in Dublin, while Ryan Hotels and Jurys both remained offered, with Jurys off 1p at 217p. The two hotel groups are among the most obvious losers if tourism falls off as a result of the ceasefire breakdown. Irish Continental Group was off 10p at 500p as a result of similar negative sentiment.

United Drug, which also has a significant exposure in the North, was off 8p at 292p ahead of today's annual general meeting in Dublin. Woodchester, which has recently expanded into the North, was unchanged at 185p.