Iseq manages to outperform its peers

The Irish market climbed for its fourth consecutive session yesterday, adding 1.3 per cent to close at its highest level in more than two weeks.

Gains were seen in most of the indices across Europe, but for once the Iseq index of Irish shares outperformed its peers.

Activity, however, was relatively quiet, with dealers reporting limited trading in all but the front liners. Independent News & Media was the biggest mover, jumping 8.4 per cent, or 22 cents, to close at €2.83. However, volume was light, with fewer than a million shares changing hands.

One dealer said the gain was simply the result of the significant declines seen in the stock last week: it fell 16 per cent after Citigroup initiated coverage of the company with a sell rating.

However, another dealer speculated that Denis O'Brien may have been back in the market, buying stock at the low price - a move that has in the past boosted sentiment.

Elsewhere, drinks group C&C recovered some of its losses, rising 4.8 per cent, or 28 cents, to end at €6.08. As many as one million shares changed hands.

Among the financials, AIB was an outperformer, gaining 1.7 per cent, or 29 cents, to close at €17.29.

This stock has suffered more than its peers of late as a result of falling out of the Eurostoxx 50. Dealers said yesterday that it may be starting to regain some momentum. The other financials were a mixed bag, with Anglo Irish Bank falling 1.9 per cent, or 25 cents, to €13.01, while Bank of Ireland added 0.8 per cent, or 10 cents, to end at €13.10.

Sentiment in the banking sector was helped by an announcement from UBS detailing its subprime losses, igniting speculation that the worst of the damage from the credit crunch may be over.