Iseq breaks through 8,000 mark for the first time

The Iseq index broke through the 8,000 mark for the first time yesterday, rising 41 points to reach a record high of 8,018.

Irish Life & Permanent (IL&P) was one of the more high-profile stocks on the Irish market yesterday, gaining more than 3 per cent as Aviva's bid for Prudential fuelled talk of further consolidation in the sector.

After surging by 5 per cent in early trade, IL&P shares later gave up some ground but still closed 55 cent, or 3 per cent, higher at €18.75. NCB Stockbrokers, which has a price target of €21.30 on the shares, said the prospect of merger activity in the sector should help underpin the shares.

Other stocks in the financial service sector also fared well as they continued to benefit from good demand among investors. Both Anglo Irish Bank and AIB added 22 cent to €13.52 and €19.27 respectively, while Bank of Ireland gained 20 cent to €15.40. Elsewhere, the picture was mixed. Building materials group CRH lost 55 cent, or 1.9 per cent, to €28.80, but dealers blamed the drop on the re-weighting of certain international indices and noted volume was light.

In the food sector, Greencore had a good day, adding 11 cent or 3 per cent to €3.71. Dealers said the shares were benefiting from speculation about the value of its sites in Mallow and Carlow and the possibility that its British-based convenience foods business could become a takeover target.

Shares in drinks and snacks group C&C remained soft, however, slipping by two cent to €5.50 as the stock remained out of favour with investors.

Eircom added three cent, or 1.4 per cent, to €2.17, but dealers said volume was again light with Babcock & Brown no longer buying in the market.

Independent News & Media lost three cent to €2.69 ahead of the release of its full-year figures on Wednesday.

The company is expected to report a 17 per cent rise in profits on strong growth in advertising and circulation.