MARKET REPORT: Irish stocks gained ground yesterday, led by the banks amid relief that the European Central Bank had left rates unchanged for the moment.

Dealers said financial stocks were also underpinned by recent data showing continued strong growth in private sector credit, including mortgage lending.

Bank of Ireland gained 17 cents, or 1.7 per cent, to €10.32 on the news that the ECB base rate would remain at 2 per cent, while AIB was up 11 cents, or 0.9 per cent, to €12.25. Irish Life & Permanent, whose mortgage business is also affected by moves in interest rates, closed six cents, or 0.5 per cent higher at €13.40.

A number of second-line stocks also turned in strong performances yesterday.

Clinical trials group ICON was up nearly 11 per cent at $39.30 on the Nasdaq at the Irish close after releasing a strong set of third-quarter results. The stock was unchanged in Dublin at €28.20.

Merrion Stockbrokers announced it was upgrading its recommendation on the stock to a buy and was including it in its 10-stock model portfolio, which contains its favourite shares.

Bathroom manufacturer Qualceram Shires also benefited from a positive outlook statement contained in its recent results, adding 25 cents or nearly 14 per cent to €2.05.

IFG shares were also boosted by better-than-expected results, adding six cents or 5.7 per cent to €1.11.

Other gainers on the day included Grafton, where more than two million shares changed hands as the shares added 13 cents or 2.3 per cent to €5.88.

Also in the construction sector, Kingspan was up 15 cents, or 3.5 per cent, to €4.40 while McInerney added 10 cents or 2 per cent to €4.90.

Shares in Gresham fell by seven cents, or 5.7 per cent, to €1.15 as the market reacted to news that the consortium of investors interested in buying the group had revised its approach down to €1.35 per share from a previous level of €1.45.