Iseq up 5.99% as banks follow Europe in strong rally

DUBLIN REPORT: Iseq:3,217.27 (+181.81) Settlement date:May 13th

THE ISEQ index enjoyed one of the largest single-day gains in its history yesterday, as the €750 billion rescue package agreed by policy makers sparked a rally in European markets.

The Irish index gained 5.99 per cent and closed just above the 3,200 mark. “What was announced over the weekend was seen as very strong, decisive action – finally – from Europe,” one Dublin-based broker said.

The Iseq moved upwards in a straight line as soon as the Dublin market opened yesterday morning, and the index stayed strong for the whole session as buyers returned to the market.

“Banks were the real winners today,” another broker said. Irish banks rallied very strongly, in line with peers across Europe.

At one point AIB was up about 30 per cent. It slipped back somewhat by the close, but was still almost 24 per cent on the day, bringing to to €1.38.

Both Bank of Ireland and Irish Life & Permanent added more than 18 per cent apiece, bringing them to €1.68 and almost €2.72 respectively.

As usual, index heavyweight CRH played its part in the Iseq’s movement. The cement stock gained 13.5 per cent, or €2.40, bringing it to €20.15.

Kingspan, which is due to hold its annual general meeting on Thursday, was also strong on the day, climbing almost 11 per cent, or 68 cents, to €7.

Glanbia, whose co-operative shareholders voted yesterday on whether to back a bid for Glanbia PLC’s Irish milk operations, was another winner. The stock gained more than 8 per cent to close at €3.08.

In a complete reversal of Friday’s session, losers were extremely thin on the ground on the Dublin market yesterday. One of the few stocks to lose out on the day was Providence Resources, which slipped fractionally to 3.5 cents.