THIS WEEK IN THE MARKETS

WHILE the London and New York markets surged ahead Dublin was more cautious. Profit taking also helped keep the market calm. Dublin was generally undramatic but firm with movement, led by the financials, usually coming a day after more dramatic moves abroad.

On Tuesday Irish shares, responding to the developments in London and New York on Monday, finished the day 1 per cent up in value. Dealers said investors might be holding back for the Ryanair flotation. Ryanair is hoping to raise a quarter of the £100 million it intends to raise in the flotation from Irish investors.

Annual profits announced by Bank of Ireland contained no surprises and were in line with market expectations. Good growth in all areas and strong cost controls produced a 9 per cent rise in pretax profits to £395.6 million. Chief executive, Mr Pat Molloy said he was happy with the results, adding that profits had almost reached the "magic" £400 million figure.

The boards of Avonmore Foods and Avonmore co op met in Kilkenny to consider the rejection of their merger proposals by Waterford Foods. As expected, Avonmore did not make a decision on whether to go ahead with a higher proposal or to abandon the proposal. Instead it reiterated its belief that a merger of the two groups would be in the best interests of both shareholders and milk suppliers in both organisations.

In effect, Waterford has been asked to indicate the merger terms which it would consider acceptable.

DCC shares jumped 13p on Monday after the industrial holding company reported a stronger than expected 22 per cent rise in pre tax profits to £35.3 million for the year to the end of March.

Profits were enhanced by an exceptional gain of £4 million on the sale of its 24.5 per cent stake in Heiton, and strong growth in its computer and healthcare divisions. When the exceptional gain was stripped out, the underlying rise in pre tax profits was 11 per cent.

Bula Resources is to carry out an investigation into how an incorrect bullish announcement on its Siberian oil well was made. New information revealed that the well flowed insignificant amounts and would not be brought into production. Last October, Bula announced it had successfully tested oil at the Salmskoye field in western Siberia.

Paper and packaging giant Smurfit had a good week, with favourable developments overnight in the US leading to a 4p rise on Thursday.

Another mover was the builders merchants, Heiton, which expanded into the plant hire business through the acquisition of Sam Hire Holdings and Leeway Properties. The consideration of £5.2 million is to be met from Heiton's resources. The stock closed up 2p on the day of the announcement.

The news from Brussels on Wednesday that Greencore was to be fined £6.6 million for anti competitive practices led to shares falling 22p during the day, but recovering slightly to close down 17p. On Thursday the shares recovered another 2p. The fine is to be provided for in the interim results due in three weeks time.