Early gains lost as market likely to open lower today

MARKET REPORT:DEALERS EXPECT Irish shares to open lower again today after a late drift on the Dublin market yesterday eliminated gains made in early trade.

Most of the leading stocks on the Dublin market dipped following a fall in US markets sparked by remarks from treasury secretary Timothy Geithner that solving the financial crisis would take time.

Dealers said the ongoing uncertainty surrounding the Government’s recapitalisation plans meant the market had no real direction lately. They hoped that the upcoming corporate reporting season would give investors a bit more focus. Traders said much of the action in Irish banks was now down to retail investors, who were simply betting on movement in the institutions’ price.

AIB closed down 1.1 per cent at €1.167. With little institutional interest, volumes were light, with about two million units changing hands in Dublin. Bank of Ireland was off 0.29 per cent at 69.8 cent, volumes were similarly weak and just over three million of the bank’s shares were traded in Dublin.

Irish Life Permanent made good gains after ratings agency Standard Poors took if off credit watch, saying it believed the mortgage lender and life business would get the support it needed from the Government. ILP added 4.37 per cent to close at €2.15. Investors bought just under two million shares yesterday.

Ryanair gave up some of the altitude it gained last week, closing 4.55 per cent down at €3.23.

Drinks group CC dropped following a strong performance on Monday, but dealers said there was still interest at prices in the low 90s. The group closed 1.15 per cent down at 95 cent.

Elan, which yesterday said it was looking at selling either the rights to its drug Tysabri, or one of its business units, dropped 1.88 per cent to close at €6.25.

Settlement date: February 13th