Strong demand and a shortage of supply for the major financial shares and the top building materials group were the main factors which drove the Irish index ahead by more than 1 per cent, with the market shrugging off the lukewarm response in London to the Bank of England rate cut and a weak opening session on Wall Street.
The other main talking point was the extraordinary trading in CBT on Nasdaq after the software group revealed that Mr Bill McCabe and Mr Greg Priest were returning as chairman and chief executive.
CBT shares had run up $2 1/2 on Wednesday even before the announcement was made, but yesterday's confirmation of the changes sent CBT shares into the stratosphere on the back of upgrades by BT Alex Brown and Robertson Stephens and the return of the momentum investors whose selling had decimated the shares in recent months after CBT sounded a profits warning.
At the Dublin close, CBT shares were up $3.19 on $15.62 with trading running at almost 20 times the average daily level.
The Irish Life/Irish Permanent merger has been given a warm welcome from analysts, media and ratings agencies. yesterday, at an ABN-Amro presentation in London, executives of both groups outlined their plans.
This presentation fuelled demand for the shares and Irish Permanent - whose shares are going to be swapped for Irish Life paper - soared 33p to 990p, while Irish Life was 10p higher on 610p.
Many believe the Irish Life/Irish Permanent merger will be the catalyst for substantial rationalisation in the Irish financial services sector and most of the financials were well-bid, but there were few sellers.
Bank of Ireland jumped 30p to £13.95, AIB was 13p higher on £10.53, Hibernian gained 5p to 730p, while Anglo Irish was 1 1/2p higher on 170 1/2p.
Among the industrials, CRH was boosted by a shortage of supply of stock and reports of upgrades by some London investment houses; the shares dealt up 60p to a new high of £11.50.
Waterford Wedgwood, however, was hit by the dismal trading statement from Royal Doulton and was down 3p at one point, but recovered later to close unchanged at 60p. Many of the food shares were left offered at their closing levels, partly due to increased competition in Britain and some portfolio restructuring by institutional investors. Independent was also offered at its closing level of 218p, up 3p on the day, but there is no sign so far of any more buying-in of shares by the media group.
Smurfit was 2p lower on 121p as company broker Davy took a knife to its 1999 forecasts for the group.
Exploration tiddler Ovoca continued to fall back and was 4p lower on 36p. Meanwhile, Tullow regained some ground and was 9p higher on the day at 60p.
On Nasdaq, Elan bounced back from some early weakness but later closed down at just under $59.,
