Shares fall as investors watch Dow

THE market fell back in very light trading yesterday as investors sat on the sidelines watching Wall Street slide.

By the end of trading in Dublin the Dow Jones index was off 80 points and had traded as low as 100 points down earlier in the session.

The financials had a mixed day. Traders said some investors were switching out of Irish Permanent and Irish Life. Irish Permanent fell 6 1/2 to 392p a share while Irish Life closed flat at 237p. Bank of Ireland lost 1p to 420p while AIB closed flat at 322p.

Independent saw good interest and closed 1p higher at 296p while Woodchester lost 2 1/2p to 190.

Ivernin experienced some selling after the news earlier in the week that it is to raise Pounds 41 million in a rights issue. The money will be used to fund its share in the Lisheen zinc/lead mine in Co Tipperary. It closed down 2p at 88p a share.

Heiton Holdings also gained slightly after announcing record pre-tax profits of Pounds 6.9 million, up 72 per cent. The final dividend was up 24 per cent to 3.1p. The company also said that the outlook continues to be positive for all fundamental factors". It closed up 1p at 104p.

Bond markets also had an uneasy day ahead of key US inflation data due out today.

Traders said the market is vulnerable at the short end. "Overseas investors are selling the shorter-end and buying the 10-year," one trader said.

The 10-year benchmark closed at 102.65p to yield 7.47 per cent from 7.49 per cent while the 6.5 per cent five-year closed at 97.72p to yield 6.92 per cent from 6.93 per cent.