GOVERNMENT bond prices continued to rise strongly on the Irish market, following the agreement on a budget stability at the EU summit in Dublin over the weekend.
At one stage bond prices were one point up in the long end and there was evidence of some foreign buying.
However, after the publication of US production figures which showed substantial gains in November, bond prices throughout Europe retreated. Most European bond prices were back at Friday's closing levels at the end of the day. However, Irish bonds performed better and ended up a half point up. "It was a very good day for bond trading", said one Dublin dealer.
The buoyancy in bond prices was expected to be reflected in higher prices in financial shares. And the two main banks responded but not by as much as some brokers expected. AIB put on 3p to 385p in a number of deals. Bank of Ireland showed a 4p gain to 507p.
CRH was also firmer. Buying interest pushed the shares up 1p to 599p.
The board changes at Irish Continental Gronp had no impact on the shares which remained Unchanged at 440p. Mr Gerry Hickey who had been managing director of the ferries division is leaving to "pursue other interests" said ICG, The resignation takes effect on December 31st. And Mr Frank Carey, marketing director indicated his wish to retire after 29 years service. He will retire from the board next March following the a.g.m. Dealers said they were taking a relaxed view on the announcements.
Independent Newspapers gained 2p at 302p. Yesterday it published details of its indebtedness following the offer for Wilson & Horton which closed last month, in line with the stock exchange rules. Indebtedness of the enlarged group, on November 22nd 1996 amounted to £328.3 million. In addition, it had guarantees of £12.8 million. Bank balances and deposits amounted to £29. million.
Kerry was firmer at 600p, following a 2p rise. Reflex in the first deal since October lost 3p at 10p.
There was a fair amount of activity in Smurfit with gained 1p at 166p, having earlier reached 168p. Unidare was a little bubbly and gained 10p at 190p.
