Market Report: The Irish market made its first upward move of the week yesterday, boosted by positive sentiment surrounding Fyffe's decision to demerge its property assets. Irish Life & Permanent, the day's other news maker, moved in the opposite direction despite issuing a trading update that was in line with expectations.
Shares in fruit and vegetable distributor Fyffes jumped 6.1 per cent after the company said it plans to establish a new, separately quoted property company. The new entity, to be called Bluestone Properties, will be made up of about €200 million of property assets. Fyffes' shareholders will own 60 per cent of Bluestone. The stock added 13 cent, to end the day at €2.26.
Meanwhile, Irish Life & Permament lost 28 cent, to close at €16.42, a decline dealers said was unfair given the lack of negative news in yesterday's trading update.
One dealer said the decline could be attributed to the sale of 2 million shares in one block that dragged the price down. He believes the stock will now recover and that analysts will likely upgrade their forecasts after the company said its earnings for this year will be in line with expectations, boosted by strong lending growth.
Elsewhere the other financials put in a mixed performance, with Allied and Bank of Ireland falling 5 cent and 4 cent respectively to €17.90 and €13.35.
Anglo fared much better, rising 16 cent, to end the day at €12.18. Buildings materials group CRH surged ahead, rising 50 cent, or 2.1 per cent, to end the day at €24.10, boosted by positive data on the US building sector.
FBD was also a star performer, rising to a 52-week high earlier in the day before receding slightly to close up 4.6 per cent at €36.60. One dealer attributed the rise in the shares to speculation that someone was seeking to build up a stake in the company.
Elan also had a good day, adding 27 cent, to €10.82, while Paddy Power rose 13 cent, to close at €11.70.
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