Hope for Eircom on takeover but dealers still wary

Market report : Share prices in Dublin softened on a day when Eircom and the financial stocks were the main talking points.

Market report: Share prices in Dublin softened on a day when Eircom and the financial stocks were the main talking points.

There was a glimmer of hope that the Swisscom takeover of Eircom may be revived following a statement from the company that said it would be holding talks with the Swiss government, which last week vetoed the acquisition.

The stock recovered on the sentiment, gaining five cent to €2. However, most dealers remain unconvinced that this deal will get back on track and were happy to sell the stock into the market.

AIB enjoyed a good run ahead of its trading statement next week and following some earnings upgrades from brokers. The shares gained more than 1 per cent to end the session at €18.33, up 20 cent.

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Bank of Ireland and Anglo Irish Bank are both on roadshows meeting with investors to stimulate interest in the shares.

Bank of Ireland closed eight cent better at €13.11 on good volume trading following a strong set of figures and indications that its second half will be similarly profitable.

Anglo Irish Bank, however, dropped 11 cent to €11.66. The bank also brought in solid figures, but with interest rates set to increase today there is some concern about the bank's ability to continue to sustain its aggressive loan growth.

Irish Life and Permanent shares were weaker, ending the day at €15.30, down 20 cent.

Fyffes continued to be affected from the fallout of the EU agreement on the banana regime, which aims to increase competition in the sector. The stock continued to be sold in sizeable volumes and ended at €2.05, down 6 cent.

CRH took a knock, with the shares off 23 cent at €22.45 after a good run in recent weeks.

Other stocks traded included Greencore, which was ex-dividend and ended at €3.35, down 14 cent.

DCC shed 22 cent to close at €15.28.

Settlement Day: December 5th