Market edges ahead as Wall Street powers on

Wall Street's surge to another record high drove most European markets strongly ahead, but the ISEQ managed only a modest gain, restricted by continued weakness in index heavyweights and what was described as a "soggy" performance by the two big banking stocks.

But the outstanding feature of the day was sustained demand for the two big cyclical industrial stocks, CRH and Smurfit. CRH in particular soared on the back of heavy demand from both domestic and institutional investors. CRH shares jumped 75 cents to a new high of €18.55 (£14.61) and are within striking distance from the number three position in the market, a position currently filled by Elan.

The shift towards cyclical stocks, the strength of the packaging sector in the US and recent positive industry supply/demand statistics kept demand for Smurfit at a high level. The shares were 10 cents higher on €2.70 (£2.13). Smurfit shares were lagging Smurfit Stone on Nasdaq, where the American associate traded as high as $15.19 before drifting back towards $24. Smurfit Stone reports quarterly results on Thursday, but as with Smurfit's recent results, most attention on Thursday will be on the trading statement rather than the actual first-quarter figures.

Other industrials were also much stronger. Kerry jumped 45 cents to a new high of €13 (£10.24), while Ryanair - boosted by a positive response to recent investor relations presentations - also hit a new high of €9 (£7.09), a gain of 12 cents. Waterford Wedgwood had its best day for months and was 6.5 cents higher on €0.87 cents (£0.63) at the close.

Elsewhere, gainers included Barlo - up 5 cents to €0.75 (£0.59), Clondalkin - up 15 cents to €6.50 (£5.12), Golden Vale - up 7 cents to €1.25 (£0.98) while Greencore, relieved of the Putnam overhang, was 10 cents higher on €3.50 (£2.76) and bid at that level.

IAWS gained 15 cents to €4.10 (£3.23), Irish Continental was 60 cents higher on €12.00 (£9.45) while Kingspan was 6 cents higher on €2.66 (£2.09). One of the few to lose ground on the day was Glanbia - down 7 cents on €1.93 (£1.52).