With the US markets going sharply lower on concern that interest rates may be heading upwards, the Irish market fell heavily. However, Smurfit put in a solid performance on the back of bullish reports by Davy and Paine Webber.

News that the Bank of Japan reported positive GDP numbers put further upward pressure on US bond interest rates and on stocks and this fed through to other stock markets. Even the surprise 0.25 per cent cut in British interest rates failed to stem the fall in share prices, with some investors using the prospect of a US rate cut as a pretext to take some profits.

Smurfit bucked the downward trend, boosted by a new "buy" note from Paine Webber analyst Mr Rich Schneider, who believes Smurfit and Smurfit Stone are among those best placed to benefit from the cyclical upswing. Demand for Smurfit was also boosted by a new report from the group's Irish broker, Davy, with analyst Mr Joe Burnell describing the group as "fundamentally undervalued by any standard" on a prospective price/earnings (p/e) ratio of little more than half the US sector p/e and 20 per cent below European multiples. The Davy analyst sees substantial upside for the share and has targeted a price of €3.25 (£2.56) by year-end.

In Dublin, Smurfit jumped 20 cents to €2.57 (£2.02), while in New York the group's ADRs were over $1 higher above $27 (€25.95) as the Irish market closed. There is a still long way to go to reach the $38-$41 trading range set by BT Alex Brown. Otherwise it was definitely downwards for the leading stocks, with CRH leading the plunge with a 76 cent fall to €17.54 (£13.81), while Elan fell €2.39 to €24.13 (£19). AIB was 45 cents lower on €13.70 (£10.79), although Bank of Ireland managed to stem its recent heavy losses and rebounded 15 cents to €16.70 (£13.15).