The latest market ructions in Hong Kong, Tokyo and Jakarta, and New York's failure to mount any decent recovery brought the Irish market's bull run to a firm halt yesterday, with share prices falling back sharply.
One feature that seems to be emerging on the Irish market is that investors use the excuse of a periodic slump on Far East markets to take profit from the recent surge in Irish stocks.
There is no domestic factor that would require a 1.5 per cent fall in the value of the market. Yesterday, the main weakness was concentrated on the leaders with most of the large capitalisation stocks losing ground.
Leading financials fared worst with Allied Irish Banks down 15p on 720p despite the impressive figures from First Maryland and Bank of Ireland down 20p to £10.92 in a late deal. Other financials also weakened with Irish Life 9p lower on 446p and Irish Permanent off 15p on 845p.
Hefty selling by chairman, Mr Gerry Murphy and director, Mr Peter Killen did not dent Anglo Irish, which was just 2p lower on 145p.
The main corporate news was the full-year figures from JS Corp, which came in marginally lower than forecasts although the main interest was on the trading statement.
This was upbeat but the market remains convinced and Wall Street analysts, in particular, do not share the US packaging industry's confidence about 1998 trading.
Wall Street believes the economic slump in Asia will inevitably impact on American economic growth and that this will feed through in the form of lower demand for packaging.
One indicator of who is calling the future right will be whether the mooted $50 a ton rise in linerboard prices in May is sustained.
CRH fell another 10p to 855p in heavy trading despite the enthusiasm for the stock from Goldman Sachs.
Stock Exchange figures suggest that six million CRH shares dealt on Wednesday, exceptionally heavy trading for the share.
Elsewhere, Avonmore Waterford was 5p higher on 280p, Fyffes drifted off 1p to 133p but was well-bid at that level, while Golden Vale was also 1p easier on 107p as the group detailed plans to launch its successful Cheesestrings product on the Continent. Kerry lost 5p to 790p, bathroom builder Qualceram gained 10p to 185p, while Rapid Technology a poor performer since its DCM flotation last year was 1p lower on 109p. Glencar, which took a heavy fall in Wednesday, regained some ground with a 5p gain to 25p. And the ranks of the Exploration Securities Market may be boosted with the announcement from Conroy Gold & Diamonds that it has enlisted NCB to advise on an Irish flotation.
Conroy is currently listed on the Ofex over-the-counter market in London. Meanwhile, consulting actuaries, Mercer is the latest to warn about the dangers to the Irish market of EMU as a result of pension fund cash moving out of Irish equities. Irish pension funds currently hold about 30 per cent of their total assets in Irish equities, but Mercer suggests that investment managers will reduce this proportion to 1520 per cent post-EMU.
