Demand pushes index close to all-time high

Strong demand for Eircom, Elan, Ryanair and the financials pushed the ISEQ index near its all-time high yesterday. The index closed 1.87 per cent stronger at 5,924.94, just eight points short of the record level.

Eircom closed seven cents stronger at €3.30 as separate bid processes for its mobile and fixed-line operations continued. Despite the likely break-up of the company, Commerzbank Securities said it had downgraded its rating from "accumulate" to "hold" with a target price of €3.40. This level was actually reached at one stage yesterday and almost two million shares were traded on the day.

Elan's strong performance continued. The stock rose to €65.86 from €62.50 as 211,700 shares changed hands in Dublin. In midday trading on the New York Stock Exchange, the share was worth $54.25, 2 per cent stronger than its previous close, as news broke that it had gatecrashed the sale of British firm Quadrant Healthcare with its own bid.

On a day when a number of institutions made final settlements for outstanding DIRT liabilities with the Revenue Commission, the leading financials rose on the back of positive investor sentiment. "Banks are coming a bit into vogue," said one trader.

Irish Life & Permanent led the chase, reaching €11.60 in a 35-cent rise during the day, while AIB closed 10 cents stronger at €12.00. Bank [ RO] of Ireland added one cent to finish at €8.85 - it reports results for the half-year to September shortly.

Ryanair gained 30 cents to close at €9.20 after it told analysts to upgrade their earnings forecasts. The budget carrier said its second quarter business was boosted by one-off gains from sterling's strength against the euro and higher bookings. It said passenger numbers were up 34 per cent - above expectations of 27 per cent.