A strong performance by most of the leading shares drove the stock market higher and brought it within striking distance of last April's record highs. The ISEQ index of shares gained more than 1.6 per cent yesterday, leaving it just 34 points short of its all-time peak. Relief at Wall Street's strong performance following the Compaq profit warning and good results from Smurfit were among the factors driving the market which succeeded in shrugging off the worries about Albania which briefly afflicted other European markets.
On the Dublin market, shares in Smurfit surged by more than 11 per cent to €2.12 (£1.67) after it reported a 14 per cent increase in 1998 pre-tax profits to £171 million (€217 million). "Smurfit's results went down well in the market," one dealer said. "The tone of the company's statement was positive and the results were released against the background of a strong paper sector."
The banks also fared well with AIB gaining 40 cents to €16.10 (£12.68) while Bank of Ireland added 10 cents to €19.40 (£15.28). CRH also continued its rally, closing at €17.75 (£13.98), a gain of 62.5 cents on the day. "The stock has been on a real charge in recent days and this is just more of the same," the trader noted.
Among second-line shares, Kingspan made progress after the recent placing of 12.8 million shares with several institutions, finishing 15 cents higher at €2.60 (£2.05). Independent Newspapers firmed by 35 cents to close at €4.60 (£3.62), leaving director Mr David Palmer sitting on a paper profit of some €621,419 (£489,400). Mr Palmer exercised 254,680 options at a price of €2.16 (£1.70) on April 12th but has retained the shares.
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