A delayed reaction to Monday's record rise in the Dow Jones index had stock exchanges across Europe making gains yesterday. The ISEQ's 1.4 per cent rise was in line with the trend, reflecting heavy volume trading in the main bank shares.

AIB was up 25 cents to €16.30 (£12.84), while Bank of Ireland, with a smaller gain of 10 cents, rose to €19.40 (£15.28). Of the financial stocks, only Irish Permanent gave up gains, moving back 10 cents to €14 (£11.03). Its merger partner, Irish Life, rose by 15 cents to €9.10 (£7.17). Elan, accounting for almost 15 per cent of the index, rose by €2.98, or 5 per cent, to close at €68.43 (£53.89). At the close of trading in Dublin, its Nasdaq price was up almost 2 per cent to $74.94 (£59.02).

Also on the Nasdaq yesterday, Iona's share price had rebounded slightly and stood at $14.625 (€13.58) following last week's profit warning. Goldman Sachs cut its investment rating for the technology company to "market performer" from "market out-performer" following the news.

A broad welcome to CRH's announcement of Mr Liam O'Mahony as chief executive designate meant the industrial group's stock rose by 25 cents, or 2 per cent, to €16.30 (£12.84). One dealer said the appointment was no surprise to people close to the company and that the board was mapping out CRH's future direction well in advance. Grafton, which acquired a competitor, the British builders merchant, Niall Bailey, for £13.5 million sterling (€19.95 million), experienced a 25 cents fall in its price to €18 (£14.18).

Seafield rose by 2.86 per cent to 18 cents (14p) on the news that it had won a contract from Unilever's subsidiary, Van den Bergh Foods, to build and operate its new distribution centre in Worksop, Nottinghamshire. Irish Continental Group remained at €11.50 (£9.06) after two deals. AIB stated it had a 9 per cent stake in the ferry company's share capital.