Dublin follows Europe-wide trend as stocks edge upwards

DUBLIN REPORT: Iseq: 2.710.67 (+41.61) Settlement date: October 8thTHE DUBLIN market rose in tandem with a positive day for stocks across Europe, as credit rating agency Moody's declared itself impressed with Greece's efforts to improve its finances and service sector activity in the US expanded by more than had been forecast.

On the Iseq index of Irish shares, the strongest performer among the major stocks was Irish Life Permanent, which had been somewhat left out of the gains secured by AIB and Bank of Ireland late last week. Buyers got behind the stock yesterday, pushing it up to €1.48 – a 5.9 per cent gain on Monday’s close.

Among the other financial stocks, AIB was flat at 47 cent, while Bank of Ireland added one cent to close at 66 cent.

The airline industry attracted bullish investors as TUI Travel, Europe’s largest tour operator, said bookings for winter 2010/11 had strengthened in all markets.

Aer Lingus and Ryanair were already the recipients of positive sentiment after a transport conference for investors in London last week as well as encouraging passenger statistics from Ryanair, published Monday.

The TUI Travel trading update threw “petrol on the fire”, according to one Dublin-based dealer. Aer Lingus climbed 4.8 per cent to €1.10, while Ryanair advanced 3.9 per cent to €4.01.

The biggest fallers of the day were Elan, which closed down 1.9 per cent at €4, and United Drug, which finished down 1.6 per cent at €2.36.

Elsewhere, drinks group CC was under a little pressure ahead of its interim results release next week and it closed down 1 per cent at €3.10.

Building materials group CRH shook off a downgrade of its credit rating by Fitch Ratings. On the back of a strong US market, the stock made gains and closed up 2.3 per cent at €12.31.