Market Report: The Irish market took its momentum from the rest of Europe yesterday, moving downwards after negative comments about the economic outlook by several members of the US Federal Reserve prompted concerns about inflation. The Bank of England and the European Central Bank both kept interest rates unchanged.
One of the few positive stories, and the only major corporate news of the day, was Eircom, which jumped 20 cent, or 9.8 per cent, to end the day at €2.24. Almost 9.4 million shares changed hands in Dublin alone, more than double the three-month daily average.
The spike in the stock followed rumours that Swisscom, Switzerland's largest telephone company, had made an approach for the Irish telecom operator. Dealers said several hedge funds have been building substantial stakes in Eircom's nil-paid rights, which entitle the holder to buy new shares when they are issued next week. The nil-paid shares rose 33 per cent to 90 cent.
Eircom yesterday issued a statement saying it is not currently in discussions with Swisscom or any other firm in relation to a possible offer.
Moving in the other direction, the banks put in a negative performance led by Anglo Irish, which dropped 16 cent to close at €11.49. As many as 3.9 million shares changed hands.
Meanwhile AIB dropped 13 cent to €17.87, while Bank of Ireland ended the day down 15 cent at €13.10. Irish Life and Permanent closed down 12 cent at €15.
CRH dropped 35 cent after its recent rally to end at €22.60.
Drinks and snacks maker C&C, which has seen its share price rise recently on the back of the increasing popularity of its cider in the UK market, ended the day down 15 cent at €5.15.
Some of the small oil stocks also took a battering, with Dragon ending the day down 17 cent at €2.58 and Tullow Oil dropping 22 cent, or 6.1 per cent, to close at €3.38.
Settlement Day: October 11th
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