Irish shares advanced strongly as most major European markets pushed to record trading highs yesterday, inspired by another strong start on Wall Street. The French, German and Dutch markets hit all-time highs, although London failed to keep pace with its competitors, slipping six points as investors remained cautious ahead of news from the Bank of England's monetary policy committee, which began its regular deliberations yesterday.
A majority of economists do not expect the committee to sanction an increase in British interest rates after its two-day gathering, which ends today, but the uncertainty left the British market nervous.
Nonetheless, the Irish market moved higher, driven once again by good interest in banking shares, although dealers said trading volume was relatively light.
"Overseas investors have been in to buy the banks. It's a good way for them to buy the Irish story," one trader said.
The financial index gained 1.34 per cent on the day, boosted by an 18p rise in AIB's share price to £10.98 and a 20p jump in Bank of Ireland to £15.70. Irish Permanent gained 5p to 910p, Irish Life was up 7.5p at 687.5p while Anglo Irish added 1p to 202p.
Industrials did not fare as well, however, and the general index gained 0.42 per cent. Smurfit's share price shed 3p to 215p, reflecting overnight weakness in the US, while CRH was also down 3p at £10.55.
There was little corporate news yesterday although Heiton released its annual results for the year to April 30th, 1998. Dealers said the figures, which were in line with market expectations, were good. They showed a 28 per cent increase in pre-tax profits to £11 million while earnings per share rose by 30 per cent to 16.02p. However, the share price, which gained ground ahead of the figures, slipped 3p to 232p.
Activity in other second-line stocks was light with most remaining untraded or broadly unchanged.
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