Weak overseas sentiment fails to dent the market's confidence

WEAKER trading in London and New York failed to dent confidence in the Irish market yesterday. And with continued demand for compensating for a general easing by industrials, the market closed higher and just 10 points off its all-time high reached earlier this month.

But while most analysts are forecasting further gains, Bloxham has gone firmly against the trend with a forecast that, rather than rise, the Irish market will actually fall by 10 per cent between now and the end of the year. Bloxhams's end-year ISEQ forecast of 2,400 compares with forecasts of 2,800 from Riada, 2,750 from Davy and 2,700 from Goodbody.

Bloxham cites a lack of earnings growth, an expected rise in bond yields and long-term inter-best rates and concern over the long-term valuation of the US market as factors influencing its bearish attitude.

For the moment, however, the Bloxham view of the market is very much a minority view.

Yesterday, the focus was firmly on the major financial stocks. AIB - which lagged behind other financial stocks on Monday - rose 7p to a new high of 400p, while Bank of Ireland jumped 3p to another new high of 525p. Irish Life jumped 4p to 262p, while Irish Permanent and Woodchester were unchanged on 464p and 215p respectively.

There was little activity of note among the industrials, but CRH added 3p to 640p, while Smurfit was unchanged on 171p.

Avonmore jumped 4p to 179p but otherwise the food sector was quiet. Kingspan hit a new high with a 5p gain to 500p, Ardagh lost 7p to 123p, while Jurys closed 10p lower on 255p.