Strong gains among banks lead rally

 Dublin report:The Irish market again outperformed its European peers yesterday, boosted by strong gains among the banks, writes  Claire Shoesmith

Although in the past the Iseq's dependence on financial stocks has caused it to underperform, the heavy weighting worked in the index's favour.

It closed up 0.7 per cent at 6,643 as the majority of other European indices recorded losses.

The star performer was Bank of Ireland, which rose 4.4 per cent, or 43 cent, to end the day at €10.18. Dealers reported significant buying interest in the stock as more than eight million shares changed hands in Dublin alone.

Elsewhere Anglo put in a strong performance a day ahead of its full-year results statement. The stock gained 3.4 per cent, or 33 cent, to close at €9.98. As many as 7.1 million units traded.

Dealers said all eyes will be on the bank's outlook statement this morning, in particular in relation to lending and asset quality.

AIB was also a gainer, climbing 2.6 per cent, or 35 cent, to €14, though Irish Life & Permanent didn't fare so well, slipping 0.8 per cent, or 9 cent, to €11.60. Dealers put this down to mortgage figures released yesterday by the Irish Bankers Federation showing that new mortgage lending has fallen by 25 per cent during the last 12 months.

CRH, another Iseq heavyweight, rose 1.3 per cent, or 31 cent, to €26.65.

Meanwhile, Fyffes property spinoff Blackrock was the worst performer, falling almost 11 per cent, or 3 cent, at 30 cent. Dealers couldn't pinpoint a reason for the significant decline, but said volume was light.

Elsewhere Greencore was also a loser despite reporting a 32 per cent increase in full-year profits. The shares fell 19 cent, to €4.18, a move one dealer described as unjustified.