Liams Last Post : News dominated by courts and re-structuring , markets ok though

Good Afternoon Markets looked weaker at the opening today but there was underlying strength and throughout the day there was a gradula move higher. Ireland closed +1.3% , recovering some of the ground lost in recent profit taking.

 

The news today was dominated by event outside the markets with former billionaire property guru Bernard McNamara having a judgement of Eur62m imposed against him after earlier this week the court was told he has no unencumbered assets and is "no longer a man of significant net worth".

 

The other news was that EPMG , formerly known as Riverdeep and run by Barry O'Callaghan is involved in financial re-structuring which effectively wipes out the equity of the investors. Media reports this afternoon suggest that a number of large loans wer taken out from Anglo Irish bank to invest in this business. Anglo of course would always have said their loans were fully collateralised and asset backed. Well the chickens are pretty much coming flocking home to roost on this old chestnut. It will come as cold comfort to investors that the EPMG statement said the re-structuring would have impact on the day to day running of the business.

 

SIG the UK based insulation and building materials distribution company issued a trading update which was received warmly by the market. The stock rose +10% after it said that earnings will not be less than consensus market expectations of £60m.

 

Elan continued to benefit today from the news mentioned yesterday about the Tsyabri sales and further how it might benefit from a test being brought to the market by Biogen to help detect the JC virus. This virus is carried by a high percentage of the population with being evident but there is a strong correlation between instances of PML and this virus.  Risk mitigating strategies involving tests for the JC virus will effectively broaden the potential for Tsyabri amongst the patient groups at less risk.

 

Aer Lingus came to a lower altitude this afternoon and closed down -2% despite the positive news from its perspective of the cutting by BMI of 33% of its services between Dublin and Heathrow.

 

Smurfit carried on its progress upwards carried on the back of the news from the leading industry magazine which was optimistic re price increases continuing in the face of rising demand for boxes.

 

Across the international markets the trading was positive today with the Dow up +0.35% at 5pm and the European markets up. The large cap Eurostoxx 50 index was up +1.3 % whereas the broader Eurostoxx 600 index was up just 0.25% , London was down 0.46% this afternoon

 

Have a good evening

 

Liam

 

 

 

 

___________________________________________

Liam Boggan

　

Merrion Stockbrokers

Tel.: 353-1-2404171

Mob:353-87-2313505

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