A ROLLERCOASTER ride on Wall Street dominated trading all week after a sharp drop over the previous weekend kept many investors on the sidelines at the beginning of the week.
Attention remained focused on the US with key retail and sales data which came out yesterday keeping the market guessing on the timing of the next interest rate rise.
However, when the data did arrive, they provided few clues for anxious investors.
The producer price index data showed a 0.2 per cent rise in June, slightly above expectations. This failed to move the market significantly, although it did halt the fall.
Talk that the long bull run may be at end also helped keep volumes low.
A profit warning on Thursday from computer group HewlettPackard put the skids under the US market again. The news followed a warning on Tuesday from Motorola, the semiconductor and chips group, of slowing growth and increasing price competition.
As a result the Nasdaq Index, which includes many of the technology stocks and Elan, as well as CBT, took a beating.
On the corporate front, the week started with talk of Guinness taking over Grand Metropolitan.
However, the company quickly poured cold water on the speculation.
On the Irish market, news that BIB has cut its stake in Jones Group and Ryan Hotels hit sentiment slightly in both stocks.
Sharply lower betting shop profits hurt the Stanley Leisure, the racing to casinos group. Competition from the British lottery, scratch cards and a run of winning Irish horses on the track were blamed.
Ivernia West, which has a 56 per cent stake in the Lisheen zinc/lead mine in Co Tipperary, is to raise £41 million in a rights issue. The money will be used to fund its share of the mine's development costs and to repay existing debt.
Many investors were switching out of Irish Life after negotiations to finalise a restructuring of the life office's sales staff were deadlocked, with the company warning that it would proceed with its plans on Mongay despite union opposition.
Traders were pleased with news that Donegal Creameries may seek listing for its shares on Irish Stock Exchange. It is already a plc but wants to improve the marketability of its shares and have the facility to generate additional funds for acquisitions.
Heiton Holdings gained slightly after announcing record profits of £6.9 million, up 72 per cent. Golden Vale also gained after former chief executive, Mr Jim O'Mahony, formally relinquished all ties with the company and agreed a severance package.
The bond market had a quick week as investors waited for yesterday's US producer price data. The short end suffered slightly more than the long end as dealers priced a US rate hike into the price of treasuries. Rate holding by the Bundesbank, which again failed to cut its reporate, also benefited the long end.
Irish money markets, on the other hand, were very active. The Central Bank was using its newly re-established control to move key interest rates to levels it considers appropriate.
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