Ryanair draws investors as market treads water

Market Report: The market held its head above water yesterday, but volumes were very thin and price movements fairly limited.

The main exception to the general trend came in Ryanair, where shares rose by 24 cent to €6.89 on strong volume. The airline, which has announced new routes to Poland, is thought to have made presentations in the London market yesterday.

Dealers said investors were also encouraged by the minimal union membership at Ryanair, which comes in contrast to older airlines such as British Airways, which has recently experienced significant disruption.

The only other large name attracting much volume yesterday was Eircom, which is due to report first-quarter results under IFRS next week.

Analysts expect the firm to give details on broadband uptake and on pricing. Information on the €420 million rights issue the firm is launching to pay for Meteor is likely to come the week after next. Shares in the telecoms group rose by two cent to €1.72 yesterday.

The main financials were mostly flat, with Bank of Ireland unchanged at €12.90 and AIB adding 1 cent to close at €17.63. Anglo Irish fell two cent to €10.83, while Irish Life & Permanent was steady at €14.80.

Elsewhere, Waterford Wedgwood got a welcome boost when its shares rose by 5.5 per cent. The move failed to lift the stock above the six cent level, however, and it closed at 5.8 cent.

In the food sector, IAWS moved weaker, losing 13 cent to finish at €11.22. Greencore added five cent to close at €3.55, while Kerry Group fell 10 cent to €20.75

Irish Continental Group moved down by five cent to €10.30, despite NCB's price target of €12. The broker notes that the firm will need to apply further cost savings if declines in tourist flows continue.

Elan lost two cent to close at €6.60 as the market wondered what the new severance agreement of chief executive Kelly Martin could mean for takeover prospects.

Settlement Date: August 24th