Banks forge ahead as US investors show interest

DUBLIN REPORT: Iseq: 3,085.40 (+13.88) Settlement date: January 9th

DUBLIN REPORT: Iseq:3,085.40 (+13.88) Settlement date:January 9th

IRISH BANKS forged ahead again on a day that saw the Dublin stock market outpace its European peers.

Traders struggled to pinpoint any one driver behind the upward march of the financial stocks but reported good buying interest from US investors in both Bank of Ireland and AIB.

Bank of Irelandadded another 10.3 per cent, or almost 16 cent, to gains made earlier in the week, bringing it to € 1.69. AIBgained a further 7 per cent, close to 11 cent, to € 1.61, leaving the stock up about 30 per cent since the start of the new year.

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There was also some follow-through for Irish Life & Permanentwhich traded up in the afternoon, having lost a little ground in the morning session. The stock closed up 3.2 per cent, or 11 cent, at just over € 3.51. Overall the Iseq index gained more than 0.6 per cent on the day.

However, a strong performance across the market in general was dampened by a weak CRH, which has the largest weighting in the index. The cement giant closed about 2.5 per cent lower at just below € 18.29. Aer Lingusconfirmed to the stock market yesterday afternoon that it is in talks with Aer Arann over franchise agreements on routes between Ireland and the UK. However, the confirmation failed to support the stock, which slid 3.7 per cent to 65 cent. "The news was not hugely significant from a price perspective," one trader explained.

Food stock Glanbiatraded up four cent or 1.4 per cent to € 2.89 on the back on a trading statement which, although cautious, was in line with expectations.

DIY group Graftonalso provided a trading update and reported that turnover had continued to stabilise to the end of 2009. The stock closed at € 3.20, down from a daily high of € 3.30, but still a gain on the day of almost 2 per cent.