The ISEQ was virtually unchanged after a muted day's trading in Dublin, closing at 5,384.76, down by 0.4 per cent. Profit taking in financial stocks and also in Elan were the main features. Together with general caution ahead of the US Federal Open Market Committee meeting the abundance of sellers over buyers contributed to the downbeat tone.
AIB fell 1.3 per cent to €9.36 as its recent recovery ran out of steam and the market digested the larger than expected DIRT settlements made by two smaller banks last week. AIB has yet to settle its DIRT liability and a figure of as much as £100 million (€127 million) has been suggested. Anglo Irish Bank, one of the banks exposed to the Four Seasons Hotel receivership, fell 0.9 per cent to €2.2. The lead bank in the syndicate, ACC, has indicated that it has already made a provision in its accounts for the problem loans.
Elan, which rose last week on the back of its tie-up with Biogen to develop a multiple-sclerosis treatment, dropped 2.1 per cent to €64.5. "There is a lot of news already discounted in that price and we can't see it getting much further without some firm developments," said one trader.
Jefferson Smurfit Group continued its tentative recovery, closing up 2.3 per cent at €2.23. One of the Irish shares hardest hit by the flight to high-tech stocks earlier this year, Smurfit is now benefiting from the drift back towards old-economy stocks by US and European investors.
Eircom fell from its opening price of €2.63 to €2.58. Independent News & Media closed up 10 cents at €4.20 after the announcement of results for its New Zealand based-subsidiary, Wilson & Horton.
