Market Report: Elan was the main feature on the stock market yesterday as a near 30 per cent drop in the share price contributed to a 2 per cent fall in the ISEQ index of Irish shares.
Settlement Date: July 1st
More than three million shares traded in Dublin, well above the usual daily volume, as the shares fell by 1.85 to €4.35 after the company warned that a delay in filing its 2002 annual report could lead to a technical default on its debt, leading to the collapse of the company. In New York, where the shares are mainly traded, the stock was down by more than a third at one stage as close to 30 million shares changed hands.
"The biggest perceived negative on the stock is now a reality with the SEC involved in the process," one dealer said. "There is a big cloud hanging over the stock." However, dealers said that while the potential existed for the company to go bust, the view in the market was that the company would "muddle through".
Elsewhere, trading was relatively uneventful. Nearly six million AIB shares were traded, with the bank believed to have again been a buyer of its own stock as the start of its closed period on Monday approaches. The shares were up by four cents to 13.18.
Other financials did not fare as well with Bank of Ireland losing six cents to 10.65, Anglo Irish off seven cents at 7.78 and Irish Life & Permanent shedding 13 cents to 9.60.
CRH lost 34 cents to 13.51 as its British peer, Hanson, issued a trading statement in which it upped its provisions for asbestos-related claims. Other movers included Ryanair, down 10 cents to 5.85, and Kerry, off 15 cents to 13.30 as the EU agreed an overhaul of the dairy sector.
