Market Report

The stock market closed modestly higher despite a weak performance from the financial stocks that make up a large part of the ISEQ index.

AIB fell five cents to €12.50, Bank of Ireland shed 11 cents to €10.82 and Irish Life & Permanent lost 23 cents to €12.50.

Only Anglo Irish Bank resisted the weaker trend in the sector, adding 10 cents to €12.88.

Among the industrial shares, CRH shed 14 cents to €17.01 as British peer Hanson warned investors of a fall in first-half profits due to higher pension costs and a weak US dollar.

However, most Irish analysts expect CRH to issue a robust trading statement on July 6th, when the company is also expected to update on its acquisition programme so far this year.

Galen shares slipped by 12 cents to €10.54 despite the announcement that it had purchased for cancellation a further 470,000 shares at a price of 697.94p sterling per share.

In contrast, C&C continued its recent advance, adding five cents or 2 per cent to €2.50.

Shares in Greencore lost more than 2 per cent in early trade but recovered to close just one cent lower at €3.15 as details emerged of EU proposals for reform of the European sugar regime.

Heiton shares added nine cents to €6.67 as the market waited for the next development in the Grafton takeover talks.

Waterford Wedgwood continued to move higher, adding two cents or more than 8 per cent to €0.20 as close to four million shares were traded.

Dealers said the stock had been lifted in recent days by a few hedge funds closing out bearish positions and rumours of an MBO though few lent much credence to such talk.

More than three million Arcon shares changed hands, as the stock advanced to €0.04 from €0.03, a gain of 13 per cent, following the announcement of the proposed share capital reduction which would wipe out the deficit on its profit and loss account.