All eyes on Grafton and Heiton on a slow day

Dublin Report Settlement Day: August 4thThe market posted modest growth of 0.4 per cent yesterday, with investors declining to take much in the way of positive signal from the latest US economic releases.

Volumes were low across the board, with just a handful of stocks managing trade of more than one million shares.

The main story was not in volumes however, with all eyes falling on Grafton and Heiton as Wolseley confirmed that it would acquire Finnish-owned merchant, Brooks.

Grafton failed to budge on the news, which changes the competitive backdrop for the sector, but Heiton moved five cents to €6.25. Neither stock was traded in notable volume, with shareholders in both holding tight to see how Grafton's stance on a Heiton takeover will develop in advance of next Friday's Takeover Panel deadline.

"Clearly the market is not spooked in any way by them doing it," said one market-watcher, pointing to the recent upward momentum in Grafton's share price.

The banks had a mixed day, with AIB gaining six cents to close at €12.79, and Bank of Ireland dropping five cents to €10.78. Davy has a 12-month price target of €12.70 on Bank of Ireland. Anglo Irish weakened by two cents to €13.10, while Irish Life and Permanent outperformed the lot by adding seven cents to finish at €12.57.

Elsewhere, Elan clawed back some of the losses it sustained over the past week, climbing by 4.4 per cent to €16.85. CRH gave up one cent to finish at €18.60.

Goodbody has upgraded its 2004 earnings forecast for the stock by 4 per cent. The broker says CRH is among the strongest firms in its sector.

Ryanair was unchanged at €4.50 in advance of next Tuesday's second-quarter numbers. Davy is expecting a return to double-digit EPS growth.

Kingspan was busier than most as it dropped three cents to €4.80. Just less than 1.3 million shares changed hands.