US inflation news lifts market

BETTER than expected inflation data in the US gave Wall Street a boost and lent support to the Irish market late in the day, although trade was very thin, according to dealers.

The early part of the day was dominated by interim results from AIB which came in ahead of forecast. They were welcomed by the market, but shares in the bank only inched ahead 1p to 337p.

The market was pleased to see the improvement coming from growth in business volumes rather than reductions in bad debt provision, or other accounting adjustments. Most brokers are now expected to adjust their forecasts upwards once they have studied the figures.

Other companies reporting yesterday included Abbey and Green Property. Abbey closed the day up 2p sterling at 182p sterling despite announcing a fall in pre tax profits to £6.2 million and admitting the prospects of the coming year were mixed".

Green pleased marginally improved interim pre tax profits of £2.94 million along with a bullish statement on progress at the new Blanchardstown Centre. The shares moved ahead 5p to 235p.

The buoyancy on Wall Street underpinned Smurfit's US associate JS Corp but had little impact on Smurfit itself, which was up only 1p on 160p. Amongst the other leaders there was little news, with CRH closing at 574p, down 1p, and Bank of Ireland putting 2 1/2p to close at 437 1/2p.

The recent decision by the European Commission to increase the quota for bananas imported from "US dollar" producer nations will have a downward effect on banana prices, with obvious consequences for Fyffes, warned analysts. However, the company's shares remained at 101p.

Other corporate news included the announcement by Clondalkin group that AIB has reduced its stake to 15.99 per cent. Dana has confirmed that Morgan Grenfell fund managers have increased their stake to 13.67 per cent.