Strong performance from financials lifts market

The Irish stock market closed modestly higher yesterday, lifted by a good showing by financial shares.

AIB rose 29 cent, or 1.8 per cent, to €16.40, Anglo Irish Bank added 15 cent, or 1.6 per cent, to €9.40. Bank of Ireland edged up by a more modest four cent to €12.12.

Irish Life & Permanent, which announced a string of senior management changes, also made gains, closing 20 cent or 1.5 per cent higher at €13.40.

Elsewhere, the picture was mixed, with IAWS the biggest faller on the day. Shares in the food group lost 50 cent, or nearly 4 per cent, to €12.10 as dealers said they came back to more realistic levels following a big jump in the wake of their inclusion in the MSCI (Morgan Stanley Capital International) Ireland index.

Paddy Power also had a poor day, losing 34 cent or nearly 2.5 per cent to €13.51 after the company noted at its annual meeting that it had experienced weaker margins following a string of poor horse-racing results in April.

Glanbia shares also took a tumble after its annual shareholder gathering, closing three cent, or 1 per cent, lower at €2.60, as the company said it had experienced challenging trading in its milk and agribusiness divisions.

Elan also closed lower, losing 19 cent, or 3 per cent, in Dublin to €5.70.

On the positive side, Grafton shares continued to move ahead, gaining a further 12 cent to €8.84.

Jurys Doyle inched up by another five cent to €14.95 as investors awaited the next salvo in the takeover saga.

Low-fares airline Ryanair also closed higher, adding seven cent, or 1.2 per cent, to €6.05 on foot of lower oil prices.

Shares in Viridian closed one cent lower at €10.74 as the company, which is Northern Ireland's main electricity supplier, reported a 14 per cent rise in underlying annual earnings and said that its Irish markets were placed for further growth.