Encouraging employment costs, figures from the US and positive earnings reports from international blue-chip companies allowed the Irish stock market to finally put an end to its recent bad run. But the renewed investor demand was firmly focused on financial shares, with industrials failing to make any real impact.
The two big banks were the star turns of the day, with AIB jumping 40p to £10.70 while Bank of Ireland was 30p higher on £14.25. AIB reports interim results next week, and Davy is expecting pre-tax profits of £350 million and earnings per share of 26.5p. Any outperformance of those forecasts should see the AIB share advance further. Other financials were also firmer with Hibernian up 12p to 692p, Irish Life 10p firmer on 625p and Irish Permanent up 10p on 910p.
Industrial stocks are still finding it difficult to attract investors and even the blue-chip of the sector, CRH, is struggling. CRH lost 15p to 960p yesterday even though NCB has suggested that its rating within the European building materials sector - where CRH is number three in the pecking order in terms of sales - is attractive.
The various results yesterday provided few surprises, although Abbey came in ahead of forecasts and is in line for upgrades from the country's analysts. The share, however, was unchanged on 360p although dealers see scope for that move towards the 400p mark in the months ahead.
Green interims were in line but the main property story was Dunloe Ewart's £62 million sterling acquisition in Britain and Northern Ireland and another £11 million acquisition of two office blocks in Dublin let to Government agencies.
Avonmore Waterford was 7p higher on 276p while Fyffes rebounded from what seems an oversold position and gained 7p to 150p. Greencore traded in some but closed down 5p on 340p while Powerscreen jumped 5p to 119p but was down 6p in London on 100p. NCB believes that now may be the time to invest in Powerscreen, on the basis that once the asset sales are complete, the shares have the ability to double from their current levels. Smurfit was 1p lower on 170p although JS Corp was showing signs of life on Nasdaq, trading up $1/4 to $13 1/4 as the Irish market closed.
Elsewhere on Nasdaq, the gains in the technology and pharmaceutical sectors boosted the likes of Elan, which was up $2 3/4 on $72 1/2 and is getting back towards its earlier highs around $75. Some of the Irish technology stocks, however, did not match the overall gains on Nasdaq, with CBT down $3/8 on $56 3/4 while Icon was trading over $1/2 higher on $30 3/4 . NCB has given the stock a strong buy recommendation, with the price having come back from its high above $40. Esat, however, was marginally firmer while Icon continued to push ahead strongly, gaining $7/8 to a new of $31 3/8.
Galway-based Saville Systems, which took a severe hammering after a profits warning last Wednesday, managed to stabilise and was up $1/4 on $25 3/4.
