Market Report:An overnight rally on Wall Street and hopes of a bail-out for bond insurers in the US led to a surge in shares on European markets yesterday, and the Iseq was no exception, advancing 323.67 points or nearly 5 per cent to 6,813.70.
While there was an element of short-trading involved, brokers said it was evidence of money coming back into the market and institutions getting involved again.
Banks led the charge, making impressive gains on reasonable volumes. Anglo Irish Bank surging by 89 cent or 9.77 per cent to €10. AIB also advanced strongly, and closed the day up €1.40 at €15.75, while Bank of Ireland was 78 cent or 8.48 per cent stronger at €9.98
"Those were huge moves for big stocks," said one trader.
Other financial stocks also performed well. Irish Life & Permanent picked up 27 cent to €11.20, while FBD tacked on 50 cent to close at €27.70.
Construction stocks were also well bid throughout the day. CRH traded up 5 per cent as it added on €1.22 to close the day at €25.57.
Kingspan put in a strong performance, and saw its share add on 48 cent to €10.48. McInerney gained more than 2.6 per cent as it tacked on 4 cent to €1.57.
However, Paddy Power gave up some of the gains from the previous day when it rose strongly on the back of rumours of a possible takeover of UK bookmaker William Hill. It shed 65 cent to finish at €19.45.
Drinks company C&C also came off its recent highs and closed the day down more than 3 per cent at €4.50.
Glanbia saw its share price lose 23 cent, or just over 5 per cent, to close at €4.30, while IAWS shed 30 cent to €13.55.
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