Gresham in demand on hopes of offer acceptance

Market Report: The Irish stock market ended the day broadly unchanged after it gave up early gains in afternoon trade.

Market minnow Gresham was the most heavily traded stock on the day as hedge funds bought into the hotel group in the hope that its largest shareholder, Red Sea, would be forced to accept the offer from the consortium of investors.

This would push the level of the offer to €1.35 from €1.30, providing a gain for opportunist investors.

More than 2.9 million Gresham shares changes hands as the stock closed two cents higher at the offer price of €1.30.

Elsewhere in the sector, Jurys Doyle also advanced, adding 15 cents to €9.65 following good soundings about the sector from the likes of Hilton and Starwood.

Other good performers on the day included McInerney, up five cents to €4.60 on the back of last week's acquisition, and Kerry Group, which added 30 cents to €17.00 ahead of today's annual meeting.

Also in the food sector, attention was on Greencore, which reports interim results today. The shares were little changed, however, adding just one cent to €2.96.

Leading financial stocks turned in a mixed performance. AIB lost three cents to €11.79 and Irish Life & Permanent shed five cents to €12.30 but Anglo Irish Bank added 10 cents to €13.00 and Bank of Ireland also closed higher, gaining 13 cents to €9.93.

C&C shares gave up two cents to €2.28 as more than 800,000 shares changed hands. Dealers said the stock was managing to remain ahead of its flotation level of €2.26 but there was no real catalyst for the shares at present.

Ryanair, which releases results on June 1st, edged down by one cent to €4.53 despite general sector weakness following a rights issue by Lufthansa.

Worries about a stronger dollar did little to dent Irish Continental's share price, which closed unchanged at €11.10.Dublin ReportSettlement Day: May 27th