HEAVY demand for the two main banking shares drove the Irish market up by almost 1 per cent yesterday to close just 15 points off its all-time high of earlier this year. Attention was most focused on Bank of Ireland and AIB which accounted for the vast bulk of the 2.5 per cent rise in the ISEQ Financial Index, and dealers said that, bar a sharp overnight fall on Wall Street, there was scope for further gains by the financials.
Dealers said there was no obvious reason for the extraordinary 19p rise by Bank of Ireland to a new all time high of 475p, hut the intensity of the bidding from both domestic and overseas investors pushed the share steadily upwards to its closing 475p. Trade in AIB was not so active, but the share still closed up 9p on 365p.
Irish Life which launched a new assault on the savings and investments market yesterday with three new products gained 3p to 240p awhile Irish Permanent, added 2p to 417p.
Leading industrials were firmer but not very active, with CRH up 2p to 618p Davy has increased its 1996 profits forecast for CRH to £196 million from £191 million and its 1997 forecast to £229 million from £214 million. Smurfit was 21/2p firmer on 164p as JS Corp dealt up $3/8 overnight to $121/2.
Among the second liners, Readymix did not trade but was well bid at its overnight 123p after good interim results. FBD also produced a good set of half year figures and was 5p higher on 210p at the close. Waterford Wedgwood was unchanged on 77p, but the share has been underpinned by heavy buying by the group's own pension fund which acquired 500,000 shares at 82p sterling on Monday.
Three million Tullow shares trading in London is now virtually an everyday occurrence, and another 3.2 million traded yesterday as news on the Pakistani gas testing was awaited.
