Bank of Ireland gains 45 cents as markets fall across Europe

Settlement Date: October 23rd: Bank of Ireland was the only story to count yesterday as the Irish Stock Exchange notched up gains of 1.53 per cent against a background of falling markets across Europe. It is the second successive strong advance by the index, taking it back through the 4,000 level to 4,041.42.

Traders said the announcement of the collapse of the Abbey National deal, when it came in mid-afternoon, was no surprise. Bank of Ireland shares were moving ahead all day on expectation that the only question surrounding the withdrawal of the bid was when and not if, and finished up 45 cents at €10.55. But the news certainly gave some impetus to AIB, which had been in the red before it broke before finishing up seven cents on €13.05.

Anglo Irish and Irish Life & Permanent paid the price as money moved back into the major banks. Both slipped four cents to €6.18 and €12.01 respectively.

Waterford Wedgwood had a strong performance moving ahead four cents to 37 cents in volume of 12 million shares. Galen Holdings again suffered collateral damage on news that the US Food and Drugs Administration refused approval for a Schering hormone treatment. Galen slipped 12 cents to €6.40. Industrial giant CRH was 15 cents ahead at €13.25 in the wake of upbeat housing figures from the United States, where it has extensive interests, on Thursday.

Volumes on the Dublin market were good, with most trading interest centred on the banking sector, according to traders. "It was a good performance by the Irish market, with people taking the view that share prices have tightened following recent volatility."

Among other second-liners, Kerry Group moved ahead 55 cents to €13.50 in very light volume.