Markets across the world ended 2003 on a quiet note, having recorded major gains over the past year, for the first time since 1999.

A combination of signs of global economic recovery and improving corporate profits boosted most indices during the last 12 months.

In Dublin, where the market was open for a half-day on New Year's Eve, the index ended the year at 4920.73, up 23.17 per cent or almost 1,000 points on 2002.

In the US, blue chip stocks etched out slim gains to end at their 2003 peak on Wednesday as investors paused to reflect on the blazing rally over the past year that helped the market rack up its first annual gain since 1999.

Signs of an economic rebound, higher company profits and the success of US-led forces in toppling Saddam Hussein gave stocks a hefty boost in 2003, helping them to recover from a three-year bear market.

Low interest rates helped build hopes for an economic recovery and feed investors' appetite for stocks according to analysts. For the year, the blue-chip Dow rose 25.3 per cent, its biggest yearly gain since 1996. The S&P 500 gained 26.4 per cent to post its largest annual gain since 1998, and the tech-laden Nasdaq soared 50 per cent, its biggest increase since 1999.

The FTSE rang out 2003 with its longest uninterrupted rally in more than six years on growing optimism the New Year will usher in a further recovery in the economy and corporate profits. The FTSE 100 index rose 13.6 percent or 536.5 points in 2003 to end the year at 4,476.9 points, up 6.5 or 0.15 per cent on the day.