Budget news will provide some cheer for Irish Stock Exchange investors with the Capital Gains Tax of 20 per cent remaining unchanged and plcs possibly benefiting from a profit sharing scheme. One dealer said the market was assured, too, by the smooth transition process to the 12.5 per cent Corporation Tax regime in 2003.
Yesterday, however, volumes were thin, with no reaction to the international tone set by Boeing's profit warning, the weakness of the Dow Jones during the afternoon or to the fall in most European bourses. Instead, there was a clawback from some of Tuesday's reversals. Both AIB and Bank of Ireland gained 12p on their respective shares, with AIB going back up to 1025p and Bank of Ireland to 1335p. Both banks are recognised as offering good value on a European financial stocks basis, one dealer said.
Other financials showed less activity. Of the two involved in merger discussions, Irish Permanent was the more illiquid, rising 5p to 905p, while Irish Life was up 25p to 580p, an increase of 4.5 per cent, on foot of interest from London investors.
CRH, one of the stocks which also suffered on Tuesday, was the only other company which attracted any great attention yesterday. It also rebounded from Tuesday's price, with interest coming from British investors following take-over activity in the sector. CRH rose 30p yesterday to 1035p. Smurfit held on to its opening price of 133p in seven deals. Ahead of today's results, Greencore was up 15p to 300p, the same as Monday's closing price, while DCC, the industrial holding group, which agreed to purchase the Irish fuels business of Burmah Castrol for £13.5 million, was up 3p on the day, at 573p.
United Drug was unchanged in one deal, staying at 530p, following the announcement of pre-tax profits of £8.7 million, a 19 per cent increase on 1997.
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