Shares benefit from strong banking performance

Market report: The Irish market rose yesterday helped by strong performances from the country's biggest banks.

The Iseq Index of Irish shares gained 53.34 points, or 0.84 per cent, to end the day at 6437.27.

Allied Irish Bank extended the gains it made on Thursday, adding 25 cent to end the week at €17.50.

A positive trading statement issued on Thursday by AIB, the Republic's biggest bank, helped to boost sentiment in the whole financial sector, dealers said.

On the back of AIB's strong performance, Bank of Ireland also gained 25 cent, to end the day at €12.95, while Irish Life and Permanent closed up 7 cent at €14. Anglo Irish closed unchanged on the day at €9.88.

Elsewhere, Paddy Power added 10 cent to close at €14.10. Finance minister Brian Cowen said yesterday he would set up a working group to review the current system of betting tax.

Among other options, the group will consider whether to introduce a gross profits tax - a tax on the difference between the amount of money bet by punters and the amount paid out in winnings, which was recently introduced in the UK.

Interest in the betting sector has also increased this week, coinciding with Royal Ascot, which has been taking place in York in northern England.

Other movers included CRH, which closed at €22.10, up 33 cent.

Meanwhile, Grafton, which is due to release a trading update early next week, gained 22 cent, to close at €9.30 on decent volume.

C&C also joined in the upwards trend, adding 3 points to end the day at €3.56 as the company benefited from data showing an exceptionally positive launch of its Magners cider in the UK.

Dealers also said Ryanair did well to end the day up 5 cents at €6.44 despite an increase in the price of crude oil in the US.

Meanwhile moving in the other direction, shares of Eircom slipped 3 cents to €1.78, while drugmaker Elan lost 25 cents to €5.55.

Settlement date: June 22nd