THE Irish market edged higher in low volume trading, with investors keeping an eye on today's meeting of the US Fed's open markets committee and Thursday's meeting of the Bundesbank council. A generally firmer tone on Wall Street supported the market but there is unlikely to be any major movement in the market until the direction of US and German interest rates becomes clear.
Both major banks were almost unchanged on the day, with AIB up 0.8p to 365p and Bank of Ireland down lp to 464p. Demand for Bank of Ireland should be underpinned somewhat by the setting of call warrants on a basket of six European banking shares by SBC. SBC will now, presumably, be in the market for Bank of Ireland shares, which are valued at 480p sterling in the SBC basket.
Smurfit recovered slightly from recent weakness and was 2p higher on 148p, CRH was also 2p firmer on 475p while Irish Life was unchanged on 258p Investors have indicated their approval far the Silvermines asset sale, acquisition and fund raising and pushed the shares up 8p to 70p.
The market is treating with the utmost skepticism reports that Avonmore is looking at a £230 million bid for Dairy Crest. The shares did not trade and sources believe that, if anything, Avonmore might like to bid for some of the Dairy Crest assets. A £230 million bid for all of Dairy Crest is seen as a non runner.
Inishtech was bid at 560p as the, market waits for fresh news on the Crean bid for the minorities.
Fyffes reports full year results tomorrow, with analysts pencilling in pre tax profits in the order of £40-£42 million. Analysts will, however, be looking more to the company's comments on current trading, and how volatile European banana prices have affected it.
