Weak US data see market give up much of early gains

MARKET REPORT: The stock market gave up much of its early gains after weak US industrial output data knocked investor sentiment yesterday afternoon.

MARKET REPORTSettlement Date: September 20th

Irish shares forged ahead in early trading, in line with other European markets, amid relief that the threat of war in Iraq was receding.

But a weak open on Wall Street brought an end to the rally and the Irish market, which had been up by as much as 2.7 per cent, closed 1.6 per cent higher.

Although banking shares came off their earlier highs, they ended stronger on the day. AIB closed 15 cents higher at €12.75, Bank of Ireland gained 37 cents to €11.25, Irish Life & Permanent added 17 cents to €12.97 while Anglo Irish was up by 10 cents to €6.30.

Ryanair received a boost from its decision to offer a million free flights and set out a customer service charter. Its shares closed 25 cents higher at €5.75, boosted also by relief in the airline sector that the fears of war have faded.

IAWS gained 20 cents after releasing a strong set of full-year results but later halved its gains to close 10 cents higher at €7.90.

Independent News & Media was among the more active stocks, adding seven cents to €1.57 as more than 3.5 million shares changed hands, prompting some speculation that the company was in the market to buy the stock.

Fyffes also traded in size, with nearly 5.6 million shares dealt, but the shares closed four cents lower at €1.43.

Trintech shares lost 6 per cent to €1.22 on the Neuer Markt after co-founder and president Mr John Maguire announced he was leaving the company while Parthus remained weak, losing another 5 per cent in London.