Banks drive Iseq over 3,000 mark

DUBLIN REPORT Iseq 3,011.24 (+45.84) at close: In a very positive end to a busy reporting week, the ISEQ broke the 3,000 mark and finished the week firmly in the black, with strong gains from banking stocks and index heavyweight CRH lifting the index.

Banking stocks surged on the back of decent volumes in the ADR’s overnight in the US traders said. AIB was the best performer among the financials. Having gained 20 per cent yesterday it jumped by 16 per cent today following confirmation that the bank is to sell its overseas assets.

Bank of Ireland added 11 per cent on the day to close at €1.21, while Irish Life & Permanent was up just under 7 per cent to €3.23.

The strong gains posted by the three financials were on decent volumes - a welcome development for banking stocks which have been struggling to attract any level of investor interest of late.

Construction giant CRH, which derives approximately half of its revenues from US operations, rose by 2 per cent, boosted by the news overnight that the House of Representatives has passed measures which will extend federal highway funding to the end of the fiscal year.

Other construction-related stocks finished the day in positive territory. Having gained 40 cent during yesterday’s session on the back of positive results, Grafton added a further 10 cent to close at €2.95.

Fyffes finished flat on the day after the fruit importer reported a rise in pretax profits for 2009.

Exploration company, Kenmare Resources fell 27 per cent to €0.18 after reporting a loss after tax of $30.4 million and announcing a fully underwritten equity issue to raise €200 million to fund the expansion of its Moma mine in Mozambique.

Generally, the ISEQ’s strong performance was in line with international trends, with other European markets finishing the day higher, and the London market marking its highest close since before the collapse of Lehman Brothers in September 2008.