THE enthusiastic response to the £600 million Bristol & West take over by Bank of Ireland drove the Irish stock market to a record high yesterday, and dealers believe that there are good prospects for further gains in both financial and industrial shares.
Turnover levels were comparatively modest largely due to the absence of a number of fund managers on a trip to the UK courtesy of Jurys, to inspect the recent hotel acquisitions.
Nevertheless, dealers estimated that about a million Bank of Ireland shares traded - the shares jumped 19p in early trading to 445p before settling well bid at 440p. Some analysts believe that the shares have the capacity to reach 470p in the medium term.
AIB was also firmer and gained 5p to 326p - although AIB's lead - over Bank of Ireland has been cut to just over £80 million after Bank's strong performance yesterday.
Among industrials, a re-rating of the UK building materials sector resulted in CRH trading up 10p to a new high of 571p. Smurfit remained steady ahead of today's first quarter results from JS Corn and was 1p stronger on 164p. JS Corp itself was 37 cents lower at $10.25 as Wall Street opened yesterday.
The main feature on the gilt market was the strong demand for a £100 million tap of the five year benchmark stock. This tap was four times subscribed, with strong demand for the stock on offer from both domestic and international investors. The five year gilt closed on a yield of 6.93 per cent, while 10 year stock closed marginally firmer on a 7.73 per cent yield.
