The Iseq index outperformed its European peers today in what was described by one Dublin broker as a relief rally.
“In general there’s money coming back into the Irish market. We’re seeing buyers,” he said. The fact that the IMF has arrived has “given relief” that Ireland has hit the bottom and “that things have finalised”, he added.
Irish banks proved the surprise winners on the day and pushed ahead despite AIB's revelation that its deposits have fallen by about €13 billion since the start of the year. AIB reached a high of almost fifty cent, before dropping back to 43.5 cent - still a gain of over 4 per cent on the day - after issuing its trading statement this afternoon.
Irish Life & Permanent surged by more than 22 per cent, or 21 cent, to €1.15.
Bank of Ireland added almost 12 per cent - or about five cent - to finish at 48 cent, on very heavy volume.
“We're a little bit amazed at how much buying [there is] in the banks,” the broker said.
Insurance group FBD added more than 5 per cent to finish at €6.07, after announcing that it has performed modestly ahead of market expecations in the second half of 2010.
CRH, the largest constituent of the Irish stock market, continued to benefit from its recent investor days in London and New York. The cement stock added another 7.5 cent, on good volume, to finish just below €14.84. Its share price has advanced by more than 13 per cent this week.
Elsewhere exploration stocks fared well, albeit on thin volumes. Petroceltic International closed up four cent at 18 cent, while Petroneft Resources was five cent ahead at 71 cent.
Overall the Iseq was up 0.8 per cent at 2,798.47. The UK's FTSE 100 lost 0.7 per cent and France's CAC 40 retreated 0.4 per cent. Germany's DAX advanced 0.1 per cent.
Additional reporting - Bloomberg