Overall recovery provides base for advances in equity markets

The strong recovery in markets all over the world - especially in the emerging markets which took a battering during the recent…

The strong recovery in markets all over the world - especially in the emerging markets which took a battering during the recent market turmoil - provided a firm foundation for gains in share prices. And with Wall Street trading 2 per cent higher as the market closed, the prospects for further gains seem promising.

Not surprisingly, the most liquid stocks notched up the best gains, with AIB up 13p on 578p, while Bank of Ireland was also 13p higher on 855p. Other financials also continued their recovery with Irish Permanent 20p higher on 655p, although Irish Life only edged 1p higher to 351p. Anglo Irish Bank was 2p higher on 111p.

Industrials were less active but CRH added 5p to 805p although Smurfit eased 1p to 196p despite a $1.25 jump by JS Corp to $16.25. Dunloe House was unchanged on 23p after announcing that it was in talks on a merger with Ewart.

Ewart did not trade in Dublin but was 5p higher on 75p sterling in London. "A case of Noel Smyth taking over Noel Smyth," was one dealer's description of the proposed merger.

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Elsewhere, Greencore was 2p higher on 314p, Fitzwilton traded busily but was unchanged on 43p, ITG gained 6p to 191p, while Ivernia was 4p higher on 104p. Ryanair - benefiting from a bullish report from NCB - was 3p higher on 3338p.

Gilt prices fell as stock prices recovered with five-year gilts on a closing yield of 5.44 per cent, tens on 6.05 per cent, while long-dated gilts closed on a 6.21 per cent yield.