Strong demand for financial shares and a big catch-up rise by Elan were the main factors that drove the Irish market to another new high, with the overall index up 2.7 per cent and financial shares 3.3 per cent stronger. Dealers said that yesterday's strong gains were part of a catchup by Irish financial shares, which have heavily under-performed their European peer group since the start of the year.

The biggest gains were notched up by AIB which jumped 45 cents to €9.80 while Bank of Ireland was 20 cents firmer on €6.85. Anglo Irish remained in strong demand with a 12 cent gain to €2.62 although Irish Life was left out of the upward movement and eased five cents to €9.10.

Elan continued to be the star of the industrials and followed the previous evening's big gains in New York with a €4.05 jump to €48.55. Elan remained firmly bid when New York opened up and was trading over $1 higher above $46 by midday. Other leading industrials were weaker with CRH down eight cents on €19.55 and Smurfit two 2 cents easier on €2.55. Eircom, however, remained firm and added five cents to €4.70. Kerry was 20 cents higher on €13.30.

Technology shares took another mauling and Baltimore lost over £6 to £95.97 sterling in London as Merrill Lynch went about book-building for the sale of GTE's 2.3 per cent stake. Later on Nasdaq, Baltimore reversed its recent gains and was trading over $15 lower below $148 by midday.

Riverdeep, however, followed the big Tuesday gains on Nasdaq with a €1.65 jump to €8.25 although the shares were later trading marginally easier on Nasdaq.