MAD cow disease and speculation about a cash call at Independent Newspapers dominated equity trading in Dublin last week.

The dairy sector saw a lot of activity as the mad cow story rumbled on. Kerry suffered early in the week, but later recovered on the traditional reluctance of domestic holders to sell stock they know they will have difficulty buying back.

This is likely to continue until the expected restructuring, which will bring the co-op stake below 51 per cent.

Avonmore also had a mixed "week after some houses took profits on the back of its beef sales despite the announcement of a strategic alliance with Mid America Dairymart, the largest US dairy coop. Waterford Foods also suffered as it is heavily exposed to any cattle cull in Britain.

Strong demand continued for industrials with CRH in particular still in strong demand from British funds.

Friends Provident and Mr Dermot Desmond's International Investment and Underwriting increased their stakes in Unidare. Friends now holds 5.7 per cent of the troubled engineering group and Mr Desmond 5.9 per cent. The fund also took larger stakes in other recovery stocks Jones and Barlo.

Greencore saw good activity after its offer for Williams Group of Tullamore was accepted by shareholders and declared unconditional.

Waterford announced a better than expected 22.7 per cent rise in pre tax profits before exceptional charges. Independent posted record results with pre-tax profits up 33 per cent to £50 million. Large lines of the stock were dealt and traders said the rising share price makes a fund raising increasingly likely.

Any cash call would probably be tied into an acquisition or an increase in its stake in APN.

US Treasuries and bonds tuned in a good performance after recent nervousness in the markets. Moderate US retail sales and survey information buoyed the market, despite a surge in German M3 growth and a pick up in British inflation.

However, comments from members of the Bundesbank Central Council helped to keep rate cut hopes alive.

The Irish gilts market under performed both bunds and US treasury bonds, keeping in line instead with Britain.

Irish inflation at 2 per cent for the year to February was lower than the market expected and eased fears that the Irish Central Bank could choose to refrain from following any rate cut which Germany may make.

Next week, analysts will be watching the US Federal Reserve Open Market Committee meeting on Tuesday for any sign on the likely direction of interest rates.

The Bundesbank council meeting on Thursday will also be closely watched, although most observers don't expect it to announce any rate cut that early. But it is expected to announce another two weeks of fixed repos at 3.3 per cent.

On the data side, German inflation figures will be closely eyed when they begin to come out of the regions at the beginning of the week.

A final inflation number is due on Wednesday or Thursday.