Independent provides highlight

The plunge by Independent Newspapers after a downgrade by company broker Davy was the highlight - or should it be lowlight - of a mixed day's trading in Dublin where there were as many fallers as risers.

Independent fell 70p to 200p after Davy cut its forecasts to indicate nil earnings growth this year and next, before the company stepped in to put a floor under its share price by buying 750,000 shares at 220p. This is third time in the past six weeks that Independent has taken such action, first at 235p, then at 225p and finally 220p yesterday.

There was no pattern to trading in the financials where AIB was 40p firmer on 980p, while Bank of Ireland - the better of the two bank shares in the past few weeks - fell 15p to £11.95 ahead of today's half-year results.

Prospective marriage partners Irish Life and Irish Permanent enjoyed mixed fortunes, with Irish Life up 10p to 560p while Irish Permanent was 35p lower on 880p.

First Active regained 5p to 325p while Hibernian was unchanged on 750p as GCU chief executive Mr Bob Scott indicated that the British insurance giant has no plans for its 28 per cent stake in Hibernian.

CGU has a wish to be treated more as a life assurer than composite insurer, largely for the higher ratings that life companies enjoy in London. On that basis, many in the market see a bid for a company with a big general insurance business like Hibernian as unlikely.

An alternative option might be for CGU to sell the Irish arm of General Accident to Hibernian, a move that would substantially strengthen Hibernian's presence in this sector and allow it to challenge Guardian/PMPA for the number position in the Irish general insurance market..