Galen gives up some gains as market edges higher

Market Report: Irish shares closed higher, in tandem with overseas markets, but trade was light while there was a dearth of newsflow.

Settlement Date: July 23rd

Dealers said Northern Irish drugmaker Galen again proved a focal point, as the stock gave up some of Thursday's 17 per cent gain in London to close five per cent lower at 705p sterling while in Dublin, it finished 50 cents, or 4.7 per cent lower, at 10.09.

The lack of clarity on the potential bidder for the company and the price they might pay, allied to a report in the Wall Street Journal suggesting that Barr Laboratories was seeking to buy Galen for less than 730p per share, depressed the share price, traders said.

Fyffes was one of the few other features on the day, adding nine cents, or 6 per cent, to 1.57 as more than 1.7 million shares changed hands. Dealers said low-grade rumours of an acquisition had been swirling around the stock for some time now.

CRH also made progress, gaining 32 cents to €15.80, helped by good housing statistics for June in the US. Trade in the banks was subdued although Bank of Ireland advanced by 23 cents to 10.43 while AIB lost five cents to 12.65.

Food group IAWS gained 24 cents to 7.84 as Merrion Stockbrokers issued a note rating the stock a strong buy at €7.60 and saying growth prospects for the group were bright and the recent de-rating was overdone. Elsewhere, in the food sector, Glanbia slipped back by 11 cents to 1.77 as the market dismissed the prospect of a move to take the group private.

Tullow added three cents to 1.16 as Merrill Lynch said it was starting coverage of the exploration firm with a buy recommendation and a 100p sterling price target.