Financials perform strongly as Iseq surges

Market Report:THE ISEQ was the shining light in Europe yesterday.

National indices fell in all 15 markets in western Europe that were open, except Ireland. But despite closing up nearly 5.5 per cent - or 319.14 points - at 6,158.82, traders said the market remains volatile.

However, there was evidence of money moving back into the market, with volumes strong in a number of the big names.

Financials were the key feature of the day. Shares in Anglo Irish Bank, which had been central to sharp intra-day trading on Wednesday on the back of rumours that it had been subjected to market manipulation, rallied strongly yesterday. Helped by a statement from the Financial Regulator that said it was working with its UK counterpart in investigating whether traders had been trying to manipulate financial company stocks, Anglo's share price surged by nearly 14 per cent to close the day at €7.85.

Elsewhere among the financials, Bank of Ireland put in a strong performance as it added 87 cents to its price, ending up at €9.82. AIB also gained on the day, closing 85 cents up at €13.45, while Irish Life & Permanent was more than 7 per cent stronger at €11.69.

Airlines, which had been under pressure earlier in week, enjoyed mixed fortunes as oil fell back towards the $100 mark. Ryanair tacked on 20 cents to €2.75. Aer Lingus, however, lost more than 4 per cent, or 9 cents, to close the day at €1.98.

Building materials giant CRH, which earlier in the day said it had agreed to buy a 50 per cent stake in Indian cement company My Home Industries for €290 million, eventually closed up 10 cents at €24 after spending much of day in the red.

Independent News & Media again saw its share price under pressure and was nearly 5 per cent weaker at €1.60.

Settlement date: March 27th