IT was a topsy-turvy week on the Dublin market, with a series of new record highs being quickly snatched back by yesterday amid growing confusion.
The market got off to a slow start with investors exercising caution ahead of the British election but was buoyed by a strong rally in New York on Tuesday pushing the ISEQ close to previous record levels.
Shares in London and New York enjoyed a good run, with the landslide Labour victory in Britain being well received yesterday.
However, the uncertainty on Irish interest rates and the rise in sterling in the aftermath of Mr Blair's victory, served to quiet things down in Dublin as the weekend approached, with some of the week's earlier gains being given up.
It took Wednesday's sharp drop in the value of the Irish currency on foreign exchanges to get the Dublin market moving to any serious degree. It didn't take long for overseas investors to come bargain hunting, keeping the market awash with orders throughout the day.
Demand was well spread with the leaders and second-liners all in good demand, boosting share prices and sending the ISEQ index into new territory at 3,104.81.
Those not already active in the Dublin market by then saw its relative cheapness highlighted in the Financial Times's influential Lex column on Thursday, bringing more overseas investors into the market. Lex tipped the Irish market as "a good bet".
Then the Central Bank crashed the party, announcing a surprise half of one percentage point increase in its key short-term interest rate.
The news came too late to dampen Thursday's rally in Dublin. However, with the ISEQ index of shares already well on its way to a new high, most investors and traders were left feeling very confused. The market closed up almost 2 per cent higher nonetheless at a record high of 3,162.93, adding more than £470 million to the value of Irish shares before slowing again yesterday.
There was little in the way of corporate news this week.
Ryan Hotels announced a 45 per cent rise in profits for last year to £4.04 million. Reporting good growth in its commercial and tourist business, the group indicated that 1997 could be another good year, with bookings performing well in the first quarter.
Ryan's chairman, Mr Conor McCarthy also announced the passing on of his chief executive role to Ryan's finance director Mr Patrick Coyle. Mr McCarthy will however remain on as non-executive chairman.
In other news, millionaire businessman Mr Dermot Desmond spent what is now believed to be less than £2 million to raise his stake in Golden Vale this week, bringing it to 8 per cent. His company, International Investment and Underwriting, now owns 12.6 million Golden Vale shares.
His latest move prompted much speculation in the market, with analysts suggesting that he may be banking on a good recovery in Golden Vale's share price. The move comes at a time when Avonmore is bidding for Waterford Foods, focusing attention once more on the Irish dairy sector.
