Leaders pause for breath as results raise dealers' spirits

The Dublin market was described as 'steady' yesterday with the overall index ending above the 5,000 point level once again, although most of the leaders were looking sleepy.

Most attention was on the annual results from CRH, which announced a 26 per cent increase in pre-tax profits. Dealers said the results were at the upper end of forecasts and there was widespread expectations of an upgrades from most of the institutions. Dealers said attention would now be focused on what kind of acquisitions could be made over the next year.

The fact that CRH is able to make an acquisition in any one of its product ranges is seen as a big advantage, according to dealers. Its continued cautious approach to dividends is seen as a strong sign it is chasing a high-growth strategy, one dealer said yesterday.

Despite the positive reaction, a small surge of profit-taking later in the day brought the closing share price down to the sterling equivalent of 953 1/2p, a fall of 16 1/2p.

'The early activity was really caused by some London investors joining the story late and pushing the price up,' commented a dealer. The stock's vigorous performance last week took some of the edge out of its performance yesterday, he added.

Kerry's results were also received warmly. But dealers said that, because the share price has moved up 19 per cent on the back of the Dalgety purchase in late January, things are now less 'hectic'. Improved liquidity in the shares following the £66 million placing of shares with institutions and the company's employees was being seen yesterday as wise decision.

'There should be sustainable growth in the shares as the company is looking quite expansionary,' said a dealer. Kerry ended up 10p on 930p.

Elsewhere, the leaders were up, but not in any dramatic way.

AIB rose from 935p to 942p in relatively quiet trade, while Bank of Ireland put on a modest 5p increase to £14.10. 'The market decided to take a little bit of a step back from last week in regard to the leading financials,' said a dealer.

Irish Permanent equally under-performed on the day compared to the ferocity last Friday when it chalked up its highest level of trade during one day, ending unchanged on £10.

Ryan Hotels was marked down 3p on the day to 80p after rumours in London about a merger with the Doyle Hotel Group finally ran out of steam.

Other movers on the day were Norwich Union, down 20p to 610p, Powerscreen down 7p to 272p and Tullow down from 195p to 184 1/2p. Diageo, normally a rather stationery stock, firmed up 47p at 775p.