THE week opened quietly with dealers saying prices were soft and the market was still very much in the holiday mode. The index was almost flat, finishing just over one point lower than Friday's close.
Hibernian Group results were described by one dealer as "a bit disappointing". The company warned that its motor premiums would have to increase because of rising accident claims.
Interest in CRH seemed to have fallen off after the group had come in for significant attention the previous week.
However, on Wednesday CRH again became the focus of attention amid rumours that it was close to buying US concrete and stone company, Tilcon, for around £180 million.
Speculation on an imminent rights issue knocked back the share price from 608p to 592.5p. CRH had recently traded as high as 615p.
Early in the week, traders said the main financials seemed to be offering very good value when compared to their counterparts in Britain and the US. However, the next day trade in the two major banks remained thin and dealers said the market was awaiting news from the FOMC regarding US interest rates and from Thursday's Bundesbank meeting.
On Tuesday, the US Federal Reserve Board opted to hold interest rates steady. On Thursday, the Bundesbank surprised the market with an aggressive rate cut. The bank lowered its securities repurchase (repo) rate, through which it influences the money market, to a new low of 3 per cent, from 3.3 per cent. Slower growth in the money supply was given as the main reason for the move.
By Thursday, AIB was still 7p down from Monday's opening price of 358p, while Bank of Ireland was where it had started the week, at 456p.
The main news on Tuesday was from Kerry, which produced better than expected interim results.
The country's largest food company produced half year pre tax profits of £20 million, a rise of 21 per cent.
The results were greeted favourably, the share price rising 3p to end the day at 595p.
On Wednesday, stocks drifted lower in line with weaker European and US markets. Despite the weaker tone, Smurfit managed to move marginally ahead, ending up 1p on the day, at 164p. However the next day the paper and packaging group dropped back to 163p.
Thursday's announcement of a 0.25 per cent rise in the variable mortgage rate at Irish Permanent came too late in the day to have any real effect on trade, dealers said.
