Financials continue to push market higher

Shares on the Dublin exchange gained 0.6 per cent yesterday as financials led the market rising by 2.23 per cent, as the ISEQ index rose by 26.82 points to close at 5,212.30.

"There were good buyers for the financials and if the financials aren't running the market is not not running," said a trader.

AIB led the race, gaining 3.49 per cent in a 32 cent rise to €9.50, a day after it reported a 12 per cent rise in first-half pre-tax profits. The share was not affected by continued uncertainty surrounding its liability to the Revenue Commissioners for unpaid DIRT tax. The bank has informed the stock exchange that it now holds some 5.4 per cent of distribution firm DCC.

While AIB buoyed its peer stocks, a trader said financials were also helped by positive sentiment in London towards banks, despite a 1.2 per cent fall on the Footsie yesterday.

Bank of Ireland gained 2.36 per cent in a 17 cent rise to €7.37 while Irish Life & Permanent added 1.23 per cent to close 10 cents higher at €8.20. Despite the rise among financials, mortgage lender First Active finished five cents weaker on the day at €1.80.

Meanwhile, Elan continued its good run to reach a new all-time high of €59.50 after a 52 cent rise. But other stocks suffered. CRH, for example, lost five cents to finish at €18.40.

Eircom lost ground again yesterday closing at €2.64 from €2.70 a day earlier. Poor sentiment on the Nasdaq in New York which filtered through to the London market did not help the former State monopoly.

Riverdeep, which reported annual losses of $32.2 million (€35.6 million) but a rise in fourth-quarter revenue, was unchanged at €3.50. The stock lost more than 3.5 per cent in early trading on the Nasdaq.