Volatility fails to stop increases on Iseq

Dublin report:Financial stocks led the market yesterday in a reversal of Monday's patterns, pushing the Iseq index of Irish shares up 1.8 per cent.

Dealers said that this only went to show the volatility in the market at the moment, with AIB shares that could have been bought for €18.55 on Monday going for as much as €19.70 yesterday.

Shares in AIB fell back a little towards the end of the day however, closing up 3.4 per cent, or 65 cent, at €19.65. Volume was light, with only 1.1 million shares changing hands.

Anglo was busier, with 3.3 million units trading, though the shares added only 1.3 per cent, or 18 cent, to close at €13.83.

Bank of Ireland meanwhile added 2.2 per cent, or 31 cent, to end the day at €14.16, while Irish Life & Permanent closed 35 cent, or 0.9 per cent higher, at €18.40.

After recovering slightly on Monday, drinks group C&C yesterday returned to its poor form, losing 1.2 per cent, or almost 8 cent, to close at €6.43. Dealers said investors had taken note of the comments by rival cider maker Scottish & Newcastle that the poor weather was impacting sales.

Elsewhere, food group Kerry put in some good gains, though dealers could pinpoint no particular reason for the increase. The shares added 5.2 per cent, or 98 cent, to end the day at €19.98.

Elan also put in a spurt, rising 5.6 per cent, or 71 cent, to €13.41 on hopes its multiple sclerosis drug Tysabri will be used as a treatment for Crohn's disease.

Irish Continental, the ferry group subject to a stalled takeover battle, added 2.1 per cent, or 50 cent, to end the day at €24.50, though volume was light. Property developer Liam Carroll yesterday confirmed he had built a 17.64 per cent stake in the firm.