Profit warning shatters Waterford share price

Market report: The ISEQ index of Irish shares edged up 18 points to 5,605.96 in a quiet day's trading yesterday.

Beleaguered luxury goods company Waterford Wedgwood was the focus of much attention after its chairman, Sir Anthony O'Reilly, issued a profit warning at its annual general meeting in Dublin yesterday.

Investors offloaded more than 3.5 million shares, knocking 32.5 per cent off the share price to leave it 4 cents down at 9 cents by the close of business yesterday.

Dealers said that investors were unimpressed by the statement, and added that the price was not helped by the company's decision to embark on a rights issue and its planned bid for Royal Doulton.

Eircom, another company chaired by Sir Anthony, dipped by 1 cent to close at €1.58. Around 3 million shares were traded in Dublin with a further 2 million in London.

Dealers said that the market had expected a tranche of shares to come on the market at €1.59, but this did not happen.

The banks were also the focus of some interest yesterday. AIB shed 3 cent to close at €13.67, with 949,000 shares changing hands.

Traders said yesterday that recent brokers' reports recommended that investors limit some of their exposure to AIB in favour of its nearest competitor, Bank of Ireland, which added 1 cent to €10.65 on the back of volumes of 2.5 million.

Also in that sector, Anglo Irish added 10 cent to close at €15.30, while Irish Life and Permanent also gained 10 cents to close at €12.90.

In industrials, CRH made some headway, gaining 9 cents to close at €18.65. Elan added 21 cents to close at €18.71, with 119,000 shares traded.

Elsewhere, Ryanair gained some altitude yesterday, closing 12 cents up at €3.74 after 1.2 million shares were traded.

Independent News and Media added 4 cents to close at €2.22.

Settlement Day: October 26th