IT was a topsy-turvy week on the Irish equity market, with the index falling and then rising after Wall Street finally decided that a 97-point fall on the back of fears about the US budget impasse was something of an overreaction. The Irish market moved solidly back to close not far short of its all-time highs.
One of the idiosyncrasies of the Irish market is the part played by Elan Corporation - one of the biggest shares but a company that has been largely ignored by Irish institutions and whose shares rarely trade in Dublin.
Indeed, the Irish Stock Exchange had to make a special provision for Elan in computing its ISEQ index to allow Elan's New York price changes to be used when calculating the index.
Elan chairman Mr Don Panoz has made no secret of his irritation at the way his company has been treated, although there are signs that some Irish funds have begun to tentatively buy Elan shares in recent months.
The antipathy towards Elan reflects the innate conservatism of Irish fund managers towards anything they do not totally comprehend, say Elan's supporters, an attitude not shared by US investors.
The news that Elan has obtained FDA approval to market its Naprelan arthritis drug is a huge development for the Athlone-based company.
The expectation of the FDA approval has been largely responsible for the Elan share being driven up from $32 to above 50 in the past few months, but still the shares have been ignored by domestic fund managers. Astute investment management or neglect of a golden investment opportunity? Only time will tell.
Otherwise, it was a pretty uneventful week on the market, bar the rollar-coaster ride that the shares took in response to developments on Wall Street and subsequent developments in London.
Most stocks followed the trend, but Smurfit displayed an unusual resilience (at least by recent comparisons) and closed the week at its best level so far this year.
Whether Smurfit can retain this level remains to be seen, as there is a growing feeling among Wall Street analysts that earnings in the packaging sector will take a hammering this year.
Smith Barney has already come out bearishly on earnings prospects, and has been joined this week by Nomura and Dean Witter, who are expecting earnings falls of 8 per cent and possibly more.
CRH continued its steady accumulation of small to medium businesses, with acquisitions in Britain, Germany, Belgium and the US, while Jurys produced a bumper set of half-year results which augur well for the full year.,
Fitzpatrick Hotels may not be on the market but in the next few years the company is likely to take a listing following ACT's £6 million investment for a 33 per cent stake. Fitzpatrick is another acquisitive hotel group and would be a welcome addition to a market which has just two hotels companies to choose from.
The next arrival of the market, however, is likely to be Des Burke's Ormonde Mining on the ESM within the next couple of weeks.