Big banks, CRH lead charge as market forges ahead

The Irish stock market gained nearly 2.4 per cent, lifted by a strong performance from the two leading banking stocks and CRH.

On a day dominated by Fed-watching in most European markets, the two main banks forged ahead. Dealers said they were buoyed by follow-through buying in the wake of AIB's recent set of interim figures, which look increasingly solid when compared to the performance of the banking sector elsewhere.

AIB rose by 50 cents, or nearly 4 per cent, to €13.50 while Bank of Ireland was up 35 cents, or almost 3 per cent, to €12.40. Anglo Irish closed unchanged at €5.88, although trading in the stock was active with some 3.8 million shares changing hands.

Building materials group CRH was another sharp gainer yesterday, adding 45 cents, or nearly 3 per cent, to €15.55 as the shares recovered some ground after last week's losses amid fears of a double-dip recession in the US. Ryanair also gained ground, firming by 30 cents, or 5 per cent, to €6.10. Fyffes traded in good volume but closed just two cents higher at €1.33.

Pharmaceutical group Galen continued to perform strongly in the wake of last week's results, adding a further 25 cents to €6.30 in Dublin yesterday. Dealers said the prospect the company would buy back up to 15 per cent of its shares, combined with the calming of investor fears over its hormone replacement therapy products, had helped lift the share price.

In the technology sector, Iona shares rose by 15 cents to €2.45 in Dublin following reports that the company was poised to cut up to 200 jobs. But in the US, where it is mainly traded, it was down 3.7 per cent by the close of business in Dublin.