THE Irish stock market performed strongly compared with the other main international markets last year. The late surge on New Year's Eve left the ISEQ index of Irish shares up 22 per cent on the year.

The Dublin market started the year by hitting a record peak in the first week of January and on December 31st managed to rack up yet another all time high. The market is now capitalised at just under £20.5 billion. The ISEQ financial index - which measures the performance of the financial shares - also ended the year at a new high, while the industrial index is just below its October peak.

With the exception of Tokyo, all the main international markets made strong gains, benefiting from an environment of economic growth and relatively low interest rates. This spurred on bond markets and equities. The New York Dow Jones Index added 26 per cent, while in London the FTSE 100 gained 11.6 per cent, also a new record.

Continental EU markets also rose, with the CAC 40 in Paris up 23.7 per cent and the Frankfurt Dax up 24.3 per cent.

Only Far Eastern markets indicated that higher interest rates could usher in less impressive movements. Japan fell over 6.3 per cent in local currency terms and, with a weaker yen, the index was down 16.7 per cent in dollar terms.