Fears that the next move in US interest rates may be upwards continued to dog stock markets around the world and the Irish market was not immune, drifting lower in thin trading. There were few highlights but vague bid speculation gave Elan and Hibernian a bit of a boost.
Most action in Elan shares takes place in New York and trading in Dublin usually involves catching up on the previous session across the Atlantic. But despite the take-over talk, where Glaxo Wellcome has been pencilled in as a potential bidder, Elan did little of note yesterday and was unchanged on €29.25 ($28.35) in Dublin while the New York-listed ADRs were marginally ahead on $31.50.
Interest rates increases usually hit cyclical industrial shares hardest and so it was yesterday with Smurfit down 15 cents on €2.35 (£1.85). By contrast, Smurfit's 33 per cent associate in the US, Smurfit Stone, was over $1 higher on $21.50 as the Irish market closed after Merrill Lynch began its coverage of the share with a "buy" recommendation.
Bank shares were weaker with AIB down 10 cents on €13.50 (£10.63) while Bank of Ireland lost a lot of ground, falling 43 cents to €17.52 (£13.80) as efforts to reassure institutional investors continue. Hibernian was boosted by the Lloyds TSB take-over of Scottish Widows and the shares jumped 86 cents to €7.80 (£6.14) on speculation that 28 per cent shareholder CGU might make a move.
