B of I closes at new high of £15.75

Bank of Ireland shares have soared 75p to an all-time closing high of £15.75, bringing the rise in the share price in the past three days to more than 11 per cent.

The shares reached a peak of £15.90 before some sellers emerged, but dealers in Dublin believe that the share may have further to fall as overseas investors - who have piled into the shares in recent weeks - take some profits. The latest big jump in Bank of Ireland shares came despite weakness in the British banking sector and a lower opening on Wall Street.

At its closing price of £15.75, Bank of Ireland is on a prospective price/earnings ratio of more than 23 based on forecast earnings per share of around 68p. This rating is well ahead of the British banking average and also almost four p/e points ahead of Allied Irish Banks.