AIB up almost 12.5% to close the session at €7.50

Iseq: 3,943.66 (120.72)THE BANKS continued their rally on the Dublin market yesterday, aided by a better than expected performance in New York and healthy gains in Europe.

Dealers said that most of the action was again focused on financial stocks and some of the other leading companies on the exchange.

AIB, which lagged its peers on the Irish market for most of the week, was the star performer, adding almost 12.5 per cent to close at €7.50.

Volumes were particularly strong, 9.1 million shares changing hands in Dublin.

The Government's success in steering its emergency legislation guaranteeing bank liabilities through the Oireachtas helped all the financial institutions cause.

Irish Life and Permanent added 7.44 per cent to close at €6.50 on trades totalling 2.8 million shares. Bank of Ireland had a more mixed day following a number of brokers' notes downgrading its stock. However, it came from behind to close 5.05 per cent up at €4.85, with investors buying 5.6 million shares.

Anglo Irish Bank was the poorest performer, gaining just 0.91 per cent to end at €5.085. Close to 3.9 million of its shares were traded on the day.

Outside the financial sector, building materials giant, CRH, was the strongest performer, gaining 5.94 per cent to close at €15.88.

Dealers said that international peers such as Lafarge and Weinerberger were particularly weak on world markets before rallying towards the end of the day.

The Irish group managed to outperform these on the back of volumes approaching two million shares.

House builder Abbey, which issued a statement describing sales in England as reasonable at its agm yesterday, added 5.46 per cent to €3.48.

Settlement date: October 8th