The Dublin market is experiencing one of its most intense bull runs for months, with the ISEQ index rising on the back of a shortage of stock and an influx of cash from overseas investors.
Most of the demand is being felt by the financial stocks, with Bank of Ireland having a particularly strong week, stealing some of the limelight from AIB, which went from 857p at the start of the week to 955p by close of business yesterday.
Leading financial shares have been strong for the last few months, but now even financial second-liners are putting on impressive gains, among them Anglo Irish Bank.
The influx of institutional cash from overseas is bemusing some dealers. "A lot of the investors we now see are only coming into the market after years of ignoring it," said one dealer.
Another dealer commented that many of the overseas investors were refugees from the Asian markets, where investors have been badly burnt in recent months. While the market is always strong during the results season, figures due next week from the Kerry Group and CRH look like increasing the momentum.
With the economy showing continued good fortune, there is a feeling the bull run in Dublin has substantial foundations and that this is supported by international investors.
While many are asking when the bubble is going to burst, others point out that even the Asian crisis, which sparked major market reversals last October, is being seen as a positive influence as the region is exporting deflationary forces to the west, holding down interest rates.
In European terms, equity investment is increasingly popular and the imminent introduction of the single currency promises to open up new possibilities for panEuropean investment.
But the week in Dublin belonged to Bank of Ireland, which gained a remarkable 83p in robust trading on Thursday evening.
While it slipped back slightly yesterday, its leap from 1235p at the start of the week to a closing price yesterday of 1405p was described by dealers as "highly impressive".
"Most of the trading is caused by the under-performance up to this by Bank of Ireland against AIB, so there is an element of catch-up going on," said one dealer.
There is also a degree of optimism about the bank's results, due in May.
CRH, which started the week on 878p, saw its price creep up to 900p by yesterday evening.
The market has been responding to analysts' predictions of a 21 per cent rise in pre-tax profits when results are announced on Tuesday.
Most of the forecasts are based on the 10 per cent increase in construction output last year, which should seriously boost the company's cement volumes.
"We don't expect the market to respond the way it did to AIB, but CRH's figures should give it a gentle lift," said a dealer.
Irish Permanent has been a talking point again this week, with the usual chorus of dealers expressing doubts about the stock's true value. Its inclusion on the Morgan Stanley index seems to have put an end to these doubts, at least in the short term.
Yesterday the shares were 41 1/2p firmer, after easing from a new record high during the day as the stock was bid in thin volumes.
Other stocks included in the Morgan Stanley index traded well on Thursday and yesterday, with dealers expecting this to come to an end by next week.
"The inclusion on the index has given some stocks like Irish Continental a chance to push forward," said a dealer.
This week also saw further rises among the building stocks, with Green Property and Grafton performing solidly.
