Iseq tracks Europe's gains as Kenmare rises 8.4%

Iseq:2,886.63 (+21.74) Settlement date: June 22nd

THE IRISH market joined in the European equities rally yesterday as German chancellor Angela Merkel appeared to soften her stance towards a Greek rescue.

The Iseq index reversed some of the losses sustained earlier in the week, rising 0.75 per cent to finish the week just below 2,890.

For a second time this week, mining company Kenmare Resources delivered the stand-out performance of the session, adding 8.4 per cent, or 42 cent, to finish at 54 cent.

On the London Stock Exchange, on which the stock has its primary listing, it rose 5.3 per cent to 47.9p. Brokers once again attributed this gain to investor expectations of earnings upgrades.

Elsewhere in the exploration sector, Dragon Oil moved 2 per cent higher, or almost 12 cent, to finish just below €5.82 after announcing it has completed a development well off the coast of Turkmenistan, and that it has tested at an initial rate of 3,038 barrels of oil per day.

Aminex said it has started drilling a new well off the coast of Tanzania, but the stock was little changed at just over eight cent.

CRH, the index’s largest component, moved off the lows of recent days. The cement stock rose ½ per cent, or 7.5 cent, to €14.41, on the back of improved US leading indicators.

Grafton Group also found favour on the day. The builders merchant and DIY retailer advanced 3 per cent, or 10 cent, to €3.40.

Bank of Ireland and AIB closed higher despite concerns expressed by EU competition commissioner Joaquin Almunia over the Government’s plans to build the new banking system with these two institutions forming pillar banks.

Bank of Ireland edged upwards to finish fractionally ahead at 12.7 cent, while AIB was almost one cent ahead at 15.8 cent.