Greencore falls on light volumes as Iseq slides

Iseq: 2,887.14 (–13.11) Settlement date: July 15th:TUMULTUOUS conditions during morning trade gave way to a calmer mood in the afternoon on equity markets, though the Iseq still finished the day down almost ½ per cent and Irish bond yields edged further upwards.

While the euro zone crisis loomed large on investors minds’, prompting many to exit risky equity positions, the main stock news on the Dublin market concerned food group Greencore.

After months of rumours, the company finally did a deal to buy fellow supermarket supplier Uniq – an acquisition that will help Greencore secure greater scale in the food-to-go and chilled desserts markets.

Dealers noted that investors were not quite sure what to make of the dynamics of the deal, partly because some might not have factored in the rights issue that will be used to fund it.

The stock was sold off, falling 8.95 per cent to 88 cent, on low trading volumes.

It was a day of contrasting fortunes for the Iseq’s two airline stocks. Aer Lingus attracted buyers, helping the stock close up almost 4 per cent at 72 cent. Ryanair, in common with most airlines across Europe, tumbled as a result of weaker equity markets in general and a profit warning from Thomas Cook in particular.

The unscheduled update from Thomas Cook said its third-quarter operating profit would be down 20 per cent on last year.

Despite the fact that the UK Office of Fair Trading has referred Kerry’s acquisition of Headland Foods to the Competition Commission, Kerry was one of the few winners on the Iseq, rising 1.8 per cent to €29. There were high vol-umes in drinks group CC, which fell almost 1 per cent to €3.52.

Dealers reported “minimal” interest in the trade of Bank of Ireland’s nil paids, which give holders the right to participate in the bank’s forthcoming rights issue.