Rate news fails to upset trade

THE ISEQ Index was marginally up in thin late trade yesterday, buoyed by a good performance in leading financial stocks, dealers said.

The announcement of a 0.25 per cent rise in the variable mortgage rate at Irish Permanent came too late in the day to have any real effect on trade, they said.

"Such a rise had not been discounted although it was not a surprise. The pressure is now on other institutions to follow suit," one dealer said.

"There has not been a lot of reaction to the announcement as yet. People will want to take a good look at the situation on Friday morning."

Irish Permanent remained unchanged at 400p after it announced its rise in mortgage rates.

Among the main financials AIB rose 2p to 351p, while Bank of Ireland gained 3p to 456p.

Leading industrial firm CRH rose 2 1/2p to 595p.

Dealers said they had nothing to add to reports that CRH was close to an agreement to acquire Tilcon Inc, a US concrete and stone company located in Connecticut.

"The first we heard about it was when it appeared in Irish newspapers this morning," one dealer said.

Paper and packaging group Smurfit dropped 1p to 163p. Other movers were Adare which gained 5p to 465p, Anglo Irish Bank, which dropped 1p to 63 1/2p and Fitzwilton, which gained a penny to close at 52p. Irish Life dropped 1p during the day but closed at the opening price of 241p.

Glencar lost 4p to 57p, Tullow gained 2p to 94 1/2p, while Grafton gained 10p to 625p. Sugar company Greencore gained 3p to 310p while IWP dropped 10p to 475p.

Jurys gained 1p to 275p.

Government bonds strengthened in busy late trade, but concerns about interest rates put a lid on performance, dealers said.