Iseq: 5,998.93 (+78.34) Settlement date: June 10th:THE IRISH stock market closed up 1.3 per cent yesterday, climbing 78 points as the index's biggest stock, CRH, advanced 3.1 per cent - outperforming other stocks in its sector - and Ryanair's share price bounced 6.8 per cent on high trading volume of 13.5 million as oil prices eased back.
But the Iseq's mid-morning ascent was arrested by comments from European Central Bank (ECB) president Jean-Claude Trichet, who suggested at yesterday's ECB press conference that the central bank was considering hiking interest rates next month to curb inflation risks.
This was bad news for financial stocks that are exposed to the residential mortgage market.
Irish Life Permanent tumbled 19 cent to €10.25, down 1.8 per cent, while Bank of Ireland fell 10 cent to €7.50, down 1.3 per cent.
AIB also lost half a percentage point, closing down six cent at €20.30.
The hawkish tone of the ECB's statement also weakened the dollar and spurred a $2 rebound in oil prices, suggesting that Ryanair's bounce might not be sustained.
It was a good day for drinks group CC, which soared 4.8 per cent to close at €5.40, up 25 cent on relatively light volume of 1.8 million shares.
There was more activity in Independent News Media, where 2.4 million shares changed hands, and it advanced almost 3 per cent to €2.27, up six cent on the day.
The market reacted positively to suggestions that industrial holdings group DCC might be broken up and its share price added 40 cent to close at €16.50, up 2.5 per cent.
Among the fallers were building materials group Kingspan, fruit distributor Fyffes and paper and packaging group Smurfit Kappa.
