PROFIT TAKING dragged the Irish market lower after a week which has seen the market stage a strong recovery from recent weakness. Overseas markets provided little stimulus and the weaker tone among the British clearers meant that Irish financial shares drifted lower.
Turnover was, once again, pretty thin with AIB the only one of the leaders to trade in any size, dealing down 3p to 351p after hitting a midday low of 347p. Bank of Ireland lost 6p to 450p while, among the leading industrials, CRH was 41/2p weaker on 6021/2p and Smurfit closed 3p lower on 164p.
Irish Life was 1p easier on 244p as crucial talks with the union representing sales staff continued. Jurys gained 10p to 250p while Kingspan was 3p higher on 363p. Tullow remains firmly in favour after its successful rights issue and closed up 31/2p on 89p in Dublin although the share was virtually unchanged in London where over 3.7 million shares traded.
Gilts were lifted in later trading after the release of US producer price data which were seen as positive for the markets. The flat PPI figures provided some support for the US bond market after a series of bond auctions during the past week.
But domestic interest rates continue to dominate the minds of investors in the Irish gilt market and there is a general expectation that rates will go up by half a point sometime next week. At the close yesterday, one month money was unchanged on 5.69 per cent.
