Free-falling leaders drag index down still further

Weaker international markets on the back of poor American jobs figures and profit warnings from AMD and EMC left the Irish market in poor shape and most of the leading stocks were lower on the day.

But once again the heaviest trading was in Fyffes where overseas hedge fund buying and domestic institutional selling resulted in almost 7 million shares changing hands. Fyffes closed up 4 cents on €1.30 and is well supported at that level by the demand from the British hedge fund buyer. Arbitrageur activity was the main reason for the 7 million shares traded in Eircom which was unchanged on €1.28.

Among the leaders, more than 2 million Bank of Ireland shares dealt as the stock fell as low as €111.05 before closing 8 cents lower on €11.18. AIB was 13 cents lower on €12.95 while Irish Life lost 37 cents to €13.30. Industrials were also lower with CRH down 52 cents on €19.93, Independent 7 cents weaker on €2.28 although Smurfit managed to buck the trend with a 1 cent gain to €2.31.

Technology stocks were sharply lower, with Datalex's negative trading statement driving the software stock to a new low of €1.20, a fall on 30 cents on the day. Horizon fell as low as €1.00 before recovering to close 10 cents weaker on €1.25.

In London, Baltimore fell another 1/2p to 16-1/2p sterling with Merrill Lynch voicing "significant concerns" over Baltimore's ability to reach profitability before it runs out of cash. Parthus lost 2-1/2p to 46-1/2p while on Nasdaq heavy losses were suffered by Iona and Smartforce.