Smurfit stars as the industrials offset weakness in financials

Jefferson Smurfit was the star of an otherwise dull day on the Irish market, with firmness among the industrials countering some slight weakness among financial shares. The gilt market was dominated by a good response to a £100 million auction of the 2008 benchmark stock, with the £100 million covered 4.5 times. Smurfit benefited from the overnight 2.2 per cent rise in the US paper sector, with the sector boosted the latest figures showing a 2.9 per cent increase in box shipments and 3.7 per cent fall in inventories.

Smurfit dealt up steadily and closed up 6p on 194p.

The other major industrial, CRH, was unchanged on 765p in thin trading.

Among the financials, AIB drifted 3/4p lower to 583p while Bank of Ireland lost 7p to 888p. Bank of Ireland has disclosed that it now has 85 per cent acceptances for its £273.6 million bid for New Ireland. Anglo Irish Bank remained firmly bid on 111p ahead of full-year results next week which are expected to show strong growth.

Elsewhere, Greencore remained under downward pressure and closed down 4p on 300p, while IWP recovered from an early sharp fall to close down 5p on 310p ahead of interim figures tomorrow.

Irish Life - which as a peripheral interest in the outcome of the Allianz/AGF/Generali takeover battle - was 3p higher on 348p.

Ryanair has not been affected so far by British Airways' plans for a rival no-frills service out of Stansted and was 5p firmer on 325p.