Financials and Eircom continue to rally

The Irish exchange was in good shape yesterday, contrasting with international markets, as the financials and Eircom continued modest recoveries after the troubles of last week. Overall, shares in Dublin gained 0.62 per cent, while stock in London and New York had dismal sessions.

CRH was best on the day recovering momentum to rise by 68 cents to €19.05 (£15.00) after dropping 35 cents on Monday. "It had drifted badly after its results and was pretty much oversold," said one trader. "Morgan Stanley came out with a buy on it, but really it was only a matter of time."

Banks continued their recovery after taking a hammering last week when they cut their mortgage rates below 4 per cent to challenge Bank of Scotland. AIB gained one cent on the day, finishing at €11.05 (£8.70), though it had reached €11.12 earlier. Bank of Ireland, which rose by 10 cents in early trading, finished three cents up at €8.33 (£6.56). Irish Life & Permanent gained five cents to close at €10.00 (£7.88).

Eircom rose again on the sentiment that it had bottomed out last Friday at a post-flotation low of €3.67 (£2.89). The share finished at €3.80 1/2 (£3.00), up 5 1/2 cents, after peaking at €3.88 (£3.06) during the day. One dealer said there was a generally positive attitude to the stock, noting that traders were happy to buy it since its slight recovery began on Monday.