Market report: The Dublin market held up well yesterday thanks largely to a good performance by CRH and the banks.

Settlement Date: September 16th

CRH managed to gain more than 1 per cent in busy trading yesterday with the stock testing the €27 level at one point. Dealers attributed much of the rise to takeover speculation surrounding its industry peer, Hanson. The markets were awash with news that Mexico's Cemex may make a bid for the building materials firm, sending Hanson's stock up by over 4 per cent.

In Dublin CRH closed at €26.95, 30 cent better, with dealers expecting it can make progress beyond €27 in the days ahead.

Kerry was also a surprise mover with the stock rising by 3 per cent to €17.70, up 48 cent. Dealers said the movement was largely due to buyer interest in the morning.

The financials generally made progress with Irish Life and Permanent making most gains on the day. It gained 24 cent, more than 1 per cent, to end at €18.94.

Anglo Irish Bank added 5 cent to €12.50, AIB was 10 cent ahead at €19.90 while Bank of Ireland ended at €14.65, up 4 cent.

Grafton posted a 35 per cent rise in pre-tax profits to €118.3 million for the six months to the end of June. While the group's performance was extremely strong in Ireland, concerns about the erosion of profit margins in the UK depressed the stock. Grafton shares lost over 4 per cent on the day, slipping back to €10.41, down 44 cent.

In other news C&C said it was to invest €200 million in its cider making facility in Clonmel in an attempt to double capacity within 18 months. C&C stock added 10 cent to €10.55 on the news.

South Wharf plc was unchanged at €6.25. Shareholders will receive 66 per cent of the expected €300 million price for the 10-acre site at Ringsend in Dublin.