Irish shares gained nearly 1 per cent as European markets ignored a weak start on Wall Street after the US central bank chairman said demand could not continue to outstrip supply in the US economy. London's FTSE 100 index closed up 2.2 per cent, German stocks gained 1.2 per cent and French shares were up 1.14 per cent as European markets shrugged off the second part of Alan Greenspan's Humphrey-Hawkins testimony on monetary policy to the Senate Banking Committee which pointed to further US rate rises.
"The Irish market was not as strong as some overseas markets but the financial stocks were not big performers which held back the index," one trader said.
Financial shares gained just 0.3 per cent yesterday, compared to a rise of 1.1 per cent on the general index, with Irish Life & Permanent accounting for much of the gains. The financial services group ended 40 cents higher at €8.00, buoyed by recent merger activity in the sector in the form of the proposed merger between Norwich Union and Commercial General Union.
By contrast, AIB gained just three cents to €8.00 while Bank of Ireland was down 91/2 cents at €6.151/2.
Dealers said Eircom rallied in line with a strong performance in the technology and telecoms sector overseas, closing up 11 cents at €4.61. They also reported good interest in Independent News & Media, which gained 15 cents to €11.00 while DCC was also up strongly, gaining 80 cents to €11.00.
In the high-tech sector, Baltimore shares fell back amid heavy profit-taking following the release of its annual results. In London, the shares closed £15.88 sterling or 12.5 per cent lower at £111.50 while on the Nasdaq they were down more than 11 per cent by the close of trade in Dublin.
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