DUBLIN REPORT: Iseq: 2,413.88 (+40.99) Settlement date: April 17th:THE IRISH stock market produced a solid performance yesterday despite a lacklustre return in the financial sector, with the Iseq index closing up 1.73 per cent at 2,413.88.

Financial stocks were hit by continuing speculation about the Government’s involvement in the banks with the creation of the National Asset Management Agency (Nama), according to brokers.

Allied Irish Banks was one of the markets worst performers, down 6.25 per cent to close at €1.05. Bank of Ireland started the day well climbing 5.9 per cent, but closed at €0.86, a minor improvement of 2.3 per cent since trading closed for the Easter break.

Irish Life and Permanent had the best financial performance, rising 11.9 per cent to close at €2.15. Brokers said this was primarily because Irish Life and Permanent lay “outside the Nama net,”

Nama aims to clean up the banking system and could potentially transfer €80 to €90 of property related assets into state ownership and free up banks to lend credit.

Cyclical stocks were on the move yesterday with building material stocks and building merchants producing a strong day of trading.

CRH bucked this trend and lagged its peer group, posting a modest rise of 0.35 per cent after peaking in the morning at €17.44 to finish the day at €17. Brokers pointed to US house prices as the reason for the cyclical surge, which they say appeared to have reached the bottom in America.

Airlines also had a strong day’s trading, boosted by a reduction in oil prices to the $50 mark. Ryanair increased 2.6 per cent to reach €3.15 by the end of the day, while Aer Lingus had its best performance in months, climbing 7.2 per cent to reach €0.74.

Independent New Media had a good day, rising 8.5 per cent in the morning to close up 5.71 per cent at €0.185.