SHARES on the Dublin market moved firmly ahead again on the back of a sustained recovery in world markets.
The banks and CRH benefited most from the renewed upsurge trading up strongly on the day. But, in a surprise move, Kerry moved sharply lower following news that its brokers had downgraded forecasts for the group's earnings next year.
AIB closed up 9 1/2p at 396p, having traded as high as 399p earlier in the session. In good demand, Bank of Ireland managed to notch up good gains, adding 3p on the day to 516p. Among the other financials, Anglo Irish Bank rose to 71 1/2p, up 1 1/2p, Irish Permanent added 5p to 490p, while Irish Life went 2 3/4p higher to 275p.
The biggest gains on the day went to CRH, which traded up 17p to 610p while the other leading industrial, Smurfit tread water, staying at 168 1/2p.
The main story was the dramatic slide in Kerry's share price. Prompted by a downgrading of 1997 earnings forecasts by its own brokers, Davys, Kerry plunged from 640p to lows of 575p before recovering to 595p, still down 45p on the day.
Amid the uncertainty dealers expect the shares could come under further pressure again throughout the rest of the week.
The rest of the food stocks fared better, with Fyffes up a penny to 109 1/2p, Golden Vale making similar gains, rising from 66p to 67p and Greencore adding 6p to 367p. Waterford Foods remained unchanged at 90p.
Other shares on the move included, Barlo which fell 1 1/2p to 40 1/2p, Unidare which gained 5p to 185p and Woodchester which recovered 2p to 212p having slipped 4p the previous day.
Irish gilts also edged slightly higher as the market looked to the US for direction. The 6.5 per cent bond due in 2001 gained 4p to dose at £101.76 to yield 5.98 per cent while the 8 per cent bond due in 2006 rose 5p to £108.85 to yield 6.61 per cent.