Banks and Aer Lingus main movers as Iseq advances 2%

DUBLIN REPORT: Iseq:3,295.75 (+62.72) Settlement date:October 9th

IRISH SHARES ended 2 per cent higher yesterday as a bullish mood swept across European and US markets, lifting all of the Iseq’s heavy-hitters in its wake and extending a global rally that began on Monday.

Equities were boosted by forecasts that third-quarter corporate earnings would be better than had been previously expected, as well as the signal of economic strength that emerged from Australia, which became the first G20 nation to begin a new cycle of interest rate hikes yesterday.

At home, Aer Linguswas the highest climber of the day, with its stock closing up almost 12 per cent at 71 cent, marking a renewal of the stock's recent resurgence in terms of its Iseq price.

The company, which plans to implement a cost-cutting restructuring programme, was the recipient of more positive investor sentiment towards the beleaguered airline sector following the publication of passenger statistics from a spate of airlines, including Ryanair, easyJet and British Airways.

Ryanair, where traffic numbers released on Monday afternoon were in line with analysts' expectations, rose 2.6 per cent to €3.47.

Although trading volumes were far from spectacular, the Irish banks all made gains, with Bank of Irelandending the day up 7.75 per cent at €3.17. AIBrose almost 2.5 per cent to €3.08, while Irish Life Permanentrose 2.2 per cent to €5.59.

Tullow Oil, which is dual-listed in Dublin and London, surged 8.3 per cent to finish at €13, after it was reported that its partner in a Ugandan exploration project had received approval for a 10-well drilling campaign, to begin in December.

Food group Greencorerose 5.3 per cent to €1.54, while Tesco's decision to launch its first brand campaign for its 125 Fresh 'n' Easy stores in the US may also boost the company's chilled food sales.

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