Volumes were strong and trading activity was brisk in Dublin despite continuing weakness in Asia and a mixed day on international markets.
The overall ISEQ index was up 43 points with the financials reaping the largest reward.
The market was especially bullish early in the day, but in line with other European markets, lost some momentum later on, as international markets expressed disappointment with Japan's attempts to revive its ailing banks.
Shares in New York offered little guidance with the Dow Jones Industrial Average drifting marginally down, while doubts over the Japanese plan helped push bond markets higher.
The financials drove the almost 1 per cent increase in the market's value and demand seems to be continuing.
"For a variety of reasons, the financials are seen as a safe bet at the moment on almost all the international markets," said a dealer. While AIB only closed up 4p at 1058p, the stock was well bid all day, although it weakened later in the afternoon. The inclusion of the bank in a short list for the 41 per cent stake in the Polish bank, Bank Przemyslowo Handlowy, was received well by traders.
"Its Polish operations have performed well, so there would be a good feeling towards that kind of purchase," said a dealer.
Bank of Ireland was one of the healthiest stocks, putting on 23p to close at 1528p. "Bank of Ireland was particularly strong today with noticeable international demand," said a trader.
CRH was strong once more rising from 1020p to 1027p. Its mid-term release showed the company spent £83.5 million on developments during the first half of the year. That is in addition to the £43 million paid for the acquisition of M.A. Segale Inc announced in May.
Traders expressed satisfaction with the annual results of Jurys which were ahead of market forecasts. Dealers said with tourism looking set to grow further, the rest of the year also looked buoyant.
"The newer hotels seem to be performing well and with a number of high-profile events scheduled for the rest of the year things are looking bright," said a trader. The rise in the share price to 650p from 625p seemed to suggest this is a widespread view at present.
Independent Newspapers continued to suffer from weakness in the South African economy where it has substantial interests. It closed down on the day from 385p to 375p. The smaller stocks recovered their value after a week of downward slips. Among those benefiting were Ryan Hotels, up from 85p to 88p,
Tullow, up from 133p to 144p and Clondalkin, which rose 8p to 608p. Meanwhile, Elan Corporation, the third biggest stock on the market, forged ahead from 4703p to 4777 1/4p. Other movers on the day were Greencore, up 10p to 405p, Heiton Holdings, up 15p to 205p, Hibernian, up from 732 1/2p to 750p and Irish Continental down 20p to 1150p.
