A sluggish day on the stock exchange resulted in the index declining by 0.6 per cent. Negative sentiment on the Bank of Ireland/Alliance & Leicester merger proposal was matched by international markets trading lower on the latest news of strength in US manufacturing which increased worries of an imminent rise in US interest rates.

Bank of Ireland was back to €17.40 (£13.70), a level last seen in 1998 as investors continued to "vote with their feet", according to one dealer. Meanwhile AIB, not to be outdone, provided its own talking point as news emerged of negotiations to take a £400 million (€508 million) stake in Singapore's Keppel Tat Lee Bank. AIB dealt in light volumes but reached an intra-day high of €12.80 before closing at €12.65 (£9.96), 10 cents lower.

Investors have yet to come down for or against the deal as further news emerges, but the move to an emerging market showing some signs of recovery from the Asian crisis would mark a new phase in the bank's development. Results from Greencore were in line with expectations and was good news in the beleaguered food sector. Greencore's pre-tax profit was up by 16 per cent to €38.2 million (£30.1 million) on a €428 million (£337 million) turnover, and its share price rose by 5 cents to €3.50 (£2.76).

The general sentiment was not helped on a day when the market was surprised by the extent of Glanbia's profit warning. The "horrendous" statement, as described by one dealer, warned that high milk prices and profit margin pressure in other operations would severely affect profits. Glanbia's share price suffered accordingly and was back 48 cents or 29 per cent to €1.15 (91p). Other food groups more or less held their ground, with Kerry 5 cents back to €11.75 (£9.25), Golden Vale 1 cent down at €1.08 (85p) and IAWS unchanged at €3.80 (£2.99).