Dublin closed the week on a flat note in line with the trend for most of the week but Eircom shareholders could be forgiven for breathing a small

sigh of relief as the share showed signs of stabilising.

But most of the activity was in the financials although the beginnings of a mortgage price war failed to have a significant impact on bank shares even though some lenders face a dent in their profits if they follow the move by Bank of Scotland, AIB and Bank of Ireland to a variable mortgage rate of less than 4 per cent.

Of the banks, First Active is most affected by the cut, with Goodbody estimating that it faces a 34 per cent drop in profits if it cuts its rates to 3.99 per cent. First Active was three cents easier on €3.18 (£2.48) but seems set to fall sharply once the impact of a mortgage rate cut is fully priced into forecast profits and earnings.

AIB and Bank of Ireland are marginally affected by the rate cuts. AIB was one cent easier on €11.95 (£9.41) although Bank dipped 27 cents to €8.55 (£6.73). Irish Life and Permanent was six cents firmer on €10 (£7.88) ahead of next week's results.

Among industrials, Heiton, facing a potential bid from Grafton, has appointed Davy as its broker, replacing Goodbody. Goodbody was broker to both Grafton and Heiton and it came as no surprise that one was moved. Eircom moved as high as €4.11 (£3.24) before closing up 21/2 cents on the day on €4.075 (£3.21).

Fyffes gained four cents to €1.69 (£1.33) after buying in 125,000 shares at €1.70, Tullow jumped 91/2 cents to €1.095 (£0.86) in line with movements in the share in London.

Hibernia Foods got an 8 per cent boost in New York after its shares were upgraded to the Nasdaq National Market System from the Nasdaq Small Cap System. The shares were trading almost 50 cents higher on $5.75 as the Dublin market closed.