BOND and equity prices soared in heavy trading on the Irish markets yesterday and dealers estimated that the best part of £1 billion worth of gilts was traded and overseas investors bid for stock in so called "convergence" trading.
The strength of the bond markets continued to boost the yield sensitive financial shares, but the biggest gains yesterday were among the industrials, and particularly some of the food stocks. Kerry jumped 25p to 650p as offers of stock remained virtually non existent. And with that illiquidity likely to continue until the corporate restructuring is completed, Kerry shares are likely to remain in heavy demand.
Greencore jumped 16p to a new high of 355p, mainly due to speculation that Greencore is set for a bumper beet crop just as other European countries are going to have a comparatively poor crop. World sugar and malt prices are also firm, adding to the demand for Greencore.
IAWS was well bid on 162p and, of the food stocks, only the out of favour Golden Vale and Waterford Foods have failed to benefit from the current bull market.
CRH jumped 9p to 635p, Avonmore was another 5p higher on 170p while Independent added 3p to 322p with strong demand at the close for all these stocks.
Smurfit was 3p firmer at the close on 170p, while James Crean added 5p to 220p.
Most of the gilt demand was concentrated on the five year stock and the yield on the 2001 fell from 6.43 per cent to 6.27 per cent.
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