Trade reflects weak world markets

Trade in Dublin reflected generally weak world markets yesterday and dealers reported that most of the leading stocks dipped as a result. The Iseq Index of Irish shares shed 66.72 points to close at 9,632.81.

The financials all lost ground yesterday. AIB dropped 23 cent to close at €22.12 with less than 2.5 million units changing hands. Bank of Ireland shed 15 cent to end the day at €16.48 with 2.6 million shares traded.

Anglo Irish Bank fell 22 cent to close at €16.37 on volumes of close to two million units.

The one financial stock to buck the trend was insurance company FBD Holdings, whose pledge to return cash to shareholders met an enthusiastic response from investors.

They bought around 700,000 shares, driving the price up by €2.25 to close at €40.25.

Packaging group Smurfit Kappa was another one of the few to get a decent run yesterday. The recent re-entrant to the market added 40 cent to close at €20.

News that a British rival, DC Smith, expected its results to beat market expectations on the back of strong prices and good demand, boosted Smurfit. Betting that these conditions will spread to the rest of the sector, investors bought almost 3.4 million Smurfit shares in Dublin yesterday.

In industrials, building materials giant CRH dropped 22 cent to close at €32.18.

Independent News & Media shed 12 cent, almost 3.3 per cent, to close at €3.55. The stock went ex-dividend yesterday, so dealers pointed out that the 8.3 cent payment to shareholders should be factored into the dip in price.

Drinks and snacks player C&C lost some of its recent fizz and closed 13 cent down at €12.32. Dealers pointed out that it has had a good run lately and suggested that some investors were taking their profits yesterday.