'Undervalued' Ryanair stock prompts interest

Market Report: The Dublin market drifted in the early part of what dealers said was one of the quietest days of the year yesterday, but recovered ground later on to close up 16.32 points at 7,798.15.

Ryanair, which last week launched a seat sale on its flights from Britain, was the focus of some interest yesterday.

Investors bought close to 3.3 million shares in Dublin, and the stock traded up at €7.11 before closing level at €7.08. Dealers said buyers had taken the view that the stock was undervalued.

Tullow Oil was one of the few sources of corporate news yesterday, reporting that it had positive results from exploration drilling in Uganda.

The stock gained one cent to close at €5.75 and dealers also reported that there was interest in the shares in London.

CRH, which this week announced that it is buying US rival Apac for €1 billion, remained popular with investors. The shares closed 15 cent ahead at €25.80, but hit €25.81 during trade. Just over 2.5 million units changed hands.

Builders' merchants and DIY specialist Grafton added two cent to close at €10.37.

United Drug gained four cent to close at €3.60, again benefiting from a school of thought that believes it is an underpriced stock.

There was no more than the usual activity in the financials, according to dealers. AIB gained 15 cent to close at €20.30 on volumes of 1.5 million. Bank of Ireland added 10 cent to end the day at €14.90 after 1.2 million units changed hands.

In other sectors, Independent News & Media had its supporters yesterday. It closed three cent up at €2.38, but hit €2.41 during the day. Just over 1.7 million shares traded.

Industrial holdings company DCC also had some activity, but it was mainly selling. The stock shed 12 cent to close at €18.80.

Another loser yesterday was bookmaker Paddy Power, which is due to report interim results in two weeks. It crossed the finish line 19 cent down at €13.55.