THE Irish market slipped slightly last week, held back by weak international markets and a particularly poor start to the week on Wall Street. The Dow Jones slipped every day until late Thursday.
Stocks initially dropped sharply after last Friday's unexpectedly strong employment figures removed the last shred of hope that interest rates might soon be cut in the US.
Volumes were also low as many players took advantage of the short week to take holidays, although Wall Street had one of its busiest days in years on Thursday.
Traders expect the market to stay in a very tight range unless international markets push ahead. And, with the Dow and FTSE close to all time highs, this could prove elusive.
The main corporate news during the week was good results from Smurfit on Wednesday. It reported a 254 per cent increase in pre tax profits to £420 million.
There was increased interest from Britain following a presentation there during the week. The presentation was more upbeat than many analysts had expected.
The market is looking for an indicator as to when prices may increase. Traders said they expect the stock to trade in a tight range of 150-170p until 1997, barring upbeat surprises. "I think we've seen all the downbeat surprises," one trader said.
The market is also looking ahead to results next week from JS Corp. Sentiment is poor following disappointing results from other US paper companies.
Boise Cascade and Georgia Pacific joined other US paper makers in reporting severe falls in first quarter profits amid a glut in the market for paper products.
Talk about Bank of Ireland's possible acquisition of Bristol & West Building Society in Britain dominated the day on Friday.
Financial stocks slipped slightly, undermined by weaker bond markets.
AIB bought another 17,000 shares in Jones Group increasing its stake to 23.03 per cent. Dealers said this underlined the potential of the stock as a recovery play.
Ardagh directors sent mixed signals to the market. Mr Edward Kilty made £2,110 on the exercise of share options.
He exercised options over 2,000 shares at 34 1/2p and sold them in the market at 140p. Company secretary, Mr Brian Butterly, also exercised options over 2,000 shares. However, he held onto them.
Avonmore disclosed that Avonmore Co op has been in the market for almost three quarters of a million shares and has increased its stake in the plc A ordinary shares from 14.7 per cent to 15.6 per cent.
IWP had a steady week despite the decision to buy out the preference shareholders in the Levendaal subsidiary in the Netherlands which is expected to enhance earnings.
Tullow traded busily ahead of expected drilling news. Interest form London was particularly keen.
