The modest rebound on international markets after early plunges allowed the Irish market regain most of its losses although the tone of the market remains negative. With some brokers suggesting that some of the bigger stocks - especially the banks - should be sold into any recovery, the prospect of any sustained recovery by the market is unlikely.
Merrion became the latest broker to go negative on the banks and recommended selling all except First Active. Other brokers have expressed similar sentiments without exactly using that dreadful word "sell".
Yesterday, Bank of Ireland traded in size - almost 3.8 million shares - and fell 18 cents to €8.07, while AIB drifted four cents lower to €9.68. Anglo Irish and Irish Life were also weaker although First Active was unchanged on €2.82 ahead of the imminent cancellation of 9.2 million "free" shares.
Among the industrials, Ryanair remained the favourite after a succession of positive comments from analysts and its recent bullish statements. The shares gained another 26 cents to close on €9.24. Elsewhere, CRH gained five cents to €16,35, Elan was 25 cents firmer on €54.25, while Glanbia edged a cent higher to €1.17 in turnover of 1.4 million shares. Jurys continued to tumble on fears over the tourism industry and lost 25 cents to €5.85.
Tech shares were mixed and Horizon lost 15 cents to €0.46. On overseas markets, the pattern of mixed trading was the same. Iona bounced back from what some brokers believe was a heavily oversold position and was trading almost 50 cents higher on $9.20 in midday Nasdaq trading. Smartforce also regained some ground, but Parthus fell 2.25p in London to a new low of 18p sterling.
