Anglo Irish performs best as financials move up

Market Report:The market moved ahead again yesterday with the financial sector posting the biggest gains. Anglo Irish was the best performer in the sector as it rose by 30 cent, or 2.4 per cent, to €12.95.

The bank hosts its annual meeting in Dublin today, with investors expected to seek some detail on how the proceeds of last week's placing will be used.

AIB was also strong, gaining 22 cent to close at €18.40 on strong volume.

Bank of Ireland was busier again, but failed to post any gains at the close. Shares finished unchanged at €13.70, having touched €13.90 in earlier trade.

Irish Life & Permanent was quiet as it added 10 cent to end the session at €17.25.

Outside the banks, CRH had a good day, rising by 39 cent to €25.80. Grafton moved ahead to a lesser extent, closing once cent stronger at €9.56. NCB yesterday raised its rating on the firm from add to buy, with an end-year price target of €11.40.

Paddy Power was solid, moving up by 35 cent to finish at €12.70, with most trade coming around €12.55 and €12.60.

Greencore recovered after attracting some selling attention at €3.45, with shares closing three cent higher at €3.48. About two million shares changed hands.

Fyffes was busy as it fell by one cent to €2.26.

C&C was punished after being downgraded from buy to hold by Citigroup. Shares in the drinks and snacks group, which will update the market on its performance at the end of next month, shed 10 cent to end the day at €5.70.

Housebuilder Abbey also lost ground, falling by 15 cent to €10.05, while McInerney added nine to close at €11.19.

Merrion believes the two firms could become takeover targets as the number of consolidation opportunities decreases for larger operators. The broker believes a buyer paying a high multiple could persuade management in both firms to sell without any need for a hostile move.