Profit-taking results in market bucking international trend

Hefty profit-taking in the financials meant that the Dublin bucked the upward trend on international stock markets, losing almost 1 per cent of its value even though Wall Street was trading up over 100 points as the Irish market closed.

Periodic spells of profit-taking are inevitable in a bull market like Dublin, and few believe that yesterday's heavy selling was anything more than a hiccup. Certainly, as long as Wall Street trades up strongly there is little, likelihood of any sustained weakness in Dublin.

Trading in the financials was volatile and AIB dealt as low as 896p in early trading before closing down 28p on the day on 903p. Likewise, Bank of Ireland traded down to a low of £14.47 before closing down 45p on the day to £14.55 - £1 lower than its high point of last week.

Irish Life, whose stunning recent run has made it one of the most expensive insurance stocks on the Irish and British markets, was 15p lower on 672p while Irish Permanent fell as low as 960p before closing down 25p on the day on 975p. Hibernian, however, bucked the downward trend in the financials and added 15p to a new high of 750p.

The two main set piece benefits - results from Avonmore Waterford and Smurfit - failed to generate any surprises, and Avonmore gained 3p to 333p while Smurfit was 1p easier on 211p after some hefty trading. Reports of another buy-back by Smurfit produced a trickle of interest, but Smurfit might want to price any future buy-back better than the last one, when the share price plummeted not long after Smurfit bought back 25 million shares at 200p.

Fyffes continued to motor head and jumped 8p to a new high of 183p while Kerry was 5p higher on 980p after it was disclosed that directors had bought 120,000 shares in the staff placing at 820p. "The market likes to see directors buying, especially at the full market price at the time," commented one fund manager.

Norwich Union also some hefty trading, mainly tax-based, bed-and-breakfast trading ahead of the end of the tax year, said one dealer.