STRONG growth in the main European markets spurred Irish equities to another new high yesterday and through the 2,800 barrier for the ISEQ, while Irish bond prices also firmed - boosted by a rebound in German and American bond prices. Dealers believe that the ISEQ has the capacity to push through 3,000 by year end.

Once again, financial shares led the charge on the equity market with Bank of Ireland jumping top to a new high, extending its lead over AIB which was 7p higher on 406p.

Bid speculation continues to support Woodchester and the share closed 3p higher on 232p - its highest level since 1988 as the market increasingly takes the view that it is only a matter of time before the Credit Lyonnais controlling stake is sold.

At current levels, the Credit Lyonnais stake is worth £265 million, but any sale will undoubtedly involve the French bank demanding a substantial premium. Whether any Irish buyer would be happy to pay more than 2.5 times book value for Woodchester is another matter.

Irish Permanent - one of the companies touted as a possible bidder for the CL stake - was up 5p on a new high of 505p.

Industrials were generally firmer with the top industrial CRH up 3p on 628p. Smurfit, however, weakened from an early high of 182 1/2p to close down 2p on the day on 179p.

Fyffes was unchanged on 112p as it bought out the remaining shares in Sunpak of Cork for £3.1 million in cash and equity, while Greencore gained 3p to 386p.

Irish bond prices were stronger with the best gains at the longer end of the curve where the 10 and 20 year benchmark stocks both closed 80p higher, supported by the strength of overseas bond markets. Ten year bonds closed on a yield of 6.62 per cent, while the long bond pushed firmly downwards through the 7 per cent yield barrier, closing on a yield of 6.93 per cent.

Five year gilts closed on a 5.98 per cent, against the background of an expectation in some quarters that the NTMA may tap some five year paper this week.