Ryanair loses out over rising oil price concerns

Market Report: The Irish stock market closed lower yesterday, hit by investor concerns about the US economic recovery and rising oil prices.

Ryanair was the most high profile loser as the rising cost of fuel again weighed on the airline sector.

The low cost airline lost 17 cents, or 4 per cent of its value, to €4.08 as it said again it would not introduce fuel surcharges despite the announcement that British Airways was forced to double such charges on long-haul flights.

Irish Continental Group, another oil sensitive stock, had a poor day again yesterday, giving up 30 cents, or more than 3 per cent to €9.

Elsewhere, dealers described reaction to the proposed Grafton/Heiton link-up as "disappointing" as both stocks remained subdued. Grafton lost two cents to €6.74 while Heiton shares added 33 cents, or 5.5 per cent to €6.33 in very light volume as the shares edged up toward the mooted offer price.

Financial stocks also had a quiet day, moving in line with the market as AIB lost eight cents to €12.65 while Bank of Ireland shed nine cents to €10.65. Irish Life & Permanent escaped the downward trend, however, to close nine cents higher at €12.39.

IFG performed less well, losing seven cents, or nearly 7 per cent to €0.95, following reports that a UK firm specialising in adverse credit lending is considering entering the Irish market.

Warner Chilcott was unchanged at €8.35 in Dublin ahead of the release of results today.

There was good volume in Eircom shares, with more than two million traded in Dublin, although the share price remained unchanged at €1.42.

In the tourism sector, Jurys Doyle lost 23 cents, or more than 2 per cent to €10.30.

Meanwhile, another old market stalwart left the Irish Stock Exchange yesterday, with the cancellation of Gresham Hotel Group's listing following its recent purchase by a consortium of investors.