Financials lead way as Iseq surges on

Dublin report:The Irish market continued its resurgence yesterday, jumping another 3.3 per cent and adding €3.3 billion back onto its valuation.

The Iseq index is now trading where it was more than two weeks ago following a roller-coaster ride in line with the rest of the global markets. Yesterday, however, it outperformed its European peers.

The financials were again the star performers, with Anglo leading the way, closing 4.1 per cent, or 57 cent, higher at €14.40.

Bank of Ireland and AIB both ended the day up 3.6 per cent, at €14.67 and €20.35 respectively. One dealer said the recent gains in the financials meant that AIB was no longer in danger of falling out of the Eurostoxx 50, which would have caused several institutional investors to move out of the stock.

Irish Life & Permanent was a slight underperformer as far as the banks were concerned, though shares still rose 1.9 per cent, or 35 cent, to close at €18.75.

Elsewhere Irish Continental Group had a busy day, with more than 2.8 million shares changing hands. The majority of the stock was traded in two blocks at a price of €24 and much of this is believed to have been property developer Liam Carroll converting his contracts for difference into actual shares. Yesterday he confirmed to the market he had amassed a 17.6 per cent stake in the ferry group.

IEX minnow Providence Resources had a good day after announcing it had found gas at a second well in the Gulf of Mexico. The shares rallied 10 per cent, although the stock is only worth just over 8 cent.

CRH, meanwhile, was also a strong gainer, jumping 5.1 per cent, or €1.63, to end the day at €33.45. Dealers said the stock was at last beginning to find some support again.