ON a busy day, Greencore was the focus of attention on equity markets when the index reached a new high closing at 3299.25.
But there was aggressive selling on the gilt market and the spread between Irish and German bonds widened. Foreign investors were concerned about the currency and the dangers of a hung Dail after the election. At the long end, bonds lost 70p, with 10 year stock down 50p and five year bonds 30p weaker.
The share index will be boosted today by the inclusion for the first time of Ryanair, which joins the official list and will account for about 2 per cent of the index. Ryanair shares closed at 330p on the grey market yesterday, down 2p.
Greencore shares rose 6p to 350p as the market approved of a positive trading statement and signs that the company has put most of its problems behind it.
The warning of a small fall in profits this year was in line with market expectations. Indications that the balance sheet would contain no gearing by year end and that the company may deal with this either through acquisitions or a share buy hack pleased the market. Despite cutting profit forecasts, most brokers are giving the shares a buy recommendation.
Bank shares were mostly flat with AIB down 3p to close at 503p, Irish Permanent down 1p to 635p and Anglo Irish Bank up 1/2p to 86p. But Bank of Ireland recovered ground, closing 5p stronger at 710p. With the flotation of Norwich Union in London imminent there was in interest in the Irish insurers and speculation of some consolidation in the industry in the medium term. Hibernian put on 12p to close at 372p.
News of the sale of United Beverages to Guinness will mean cash injections for Crean and Fyffes - £13 million for Crean and £8.6 million for Fyffes as they sell their shares in United Beverages.
Powerscreen shares did not trade but the market approved of the Northern Ireland based engineering group's 16 per cent rise in profits to £42.2 million for the year to the end of March last and its prediction of further strong growth this year.
Yeoman International announced the sale of 350,000 Adare Printing shares bringing its stake in Adare below 5 per cent. Adare closed 10p stronger at 690p.
