Iseq on the up with ILP surging more than 22%

Iseq:2,798.47 (+23.12) Settlement date:November 23rd

THE ISEQ index outperformed its European peers yesterday in what was described by one Dublin broker as a relief rally.

“In general, there’s money coming back into the Irish market. We’re seeing buyers,” he said. The fact that the IMF has arrived has provided a sense of relief that Ireland has “hit the bottom” and “that things have finalised”, he added.

Irish banks proved the surprise winners on the day and pushed ahead, despite the revelation by AIB that its deposits have fallen by about €13 billion since the start of the year.

AIBreached a daily high of almost 50 cent, before dropping back to 43.5 cent – still a gain of over 4 per cent – after issuing its trading statement in the afternoon.

Irish Life & Permanentsurged by more than 22 per cent, or 21 cent, to €1.15.

Bank of Irelandadded almost 12 per cent – or about five cent – to finish at 48 cent, on very heavy volume. "We're a little bit amazed at how much buying [there is] in the banks," one broker said.

Elsewhere in the financial sector, insurance group FBDadded more than 5 per cent to finish at €6.07, after announcing in a trading statement that it has performed modestly ahead of market expectations in the second half of 2010.

CRHcontinued to benefit from its recent investor days in London and New York. The cement stock added another 7.5 cent, on good volume, to finish just under €14.84. Its share price has advanced by more than 13 per cent over the course of the week.

Exploration stocks fared well, albeit on thin volume. Petroceltic Internationalclosed up four cent at 18 cent, while Petroneft Resources was five cent ahead at 71 cent.

Overall the Iseq was up 0.8 per cent at 2,798.47.