Shares performed well again yesterday adding a further 1.7 per cent rise to Monday's strong 2.3 per cent gain, reflecting what many analysts consider is a positive sentiment returning to the market.

"There is a general sense of well-being resulting from the new National Development Plan," said one dealer. "This has reassured people that the national economy's growth will continue. It was a very strong day in the markets."

The ISEQ index reached 4,821.45 on close of trading, up 82.56 points or 1.74 per cent on the day. This represents a 350 point recovery from the ISEQ 12-month low posted on October 28th.

CRH, the building materials group, benefited from the announcement of extensive infrastructure projects in the £40.6 billion (€51.6 billion) plan. It received a "buy" rating from Merill Lynch and was the biggest mover of the day rising by 7.8 per cent, from €17.26 to €18.60 on the day.

The financial stocks also posted impressive gains yesterday, despite the announcement that the British bank, Northern Rock, is entering the market. They were up over 3.75 per cent on the day with AIB rising by 71 cents to €13.16 and Bank Of Ireland rising nearly 27 cents to €8.78.

Ryanair showed strong growth following last week's good results. It ended the day up 50 cents at €10.10, which represents a 5.2 per cent rise.

Eircom shares remained flat on the day's trading yesterday finishing at €4.30 following their strong 33 cent gains on Monday. But the shares were trading at €4.39, only 1 cent below their three-month high.

While Elan was a major losers yesterday, falling €1.90 to €22.35.