AFTER the 98 point rise overnight on Wall Street, it came as no surprise that European markets bounced back yesterday. The Dublin market closed well over one per cent higher, just short of £17 billion market capitalisation.

While the financials marginally outperformed the industrials turnover in both sections of the market was low, with investors reluctant to offer stock.

Financials were ahead across the board with Bank of Ireland up 7p to 418p, while AIB gained 5p to 322p. Irish Life was also 7p stronger on 251p ahead of results this week, while Irish Permanent added 3p to 373p. Woodchester was unchanged on 185p, while Anglo Irish inched ahead 1/2p to 58p.

Industrials were also firmer. CRH rose 8p to a new high of 552p, while Smurfit continued to improve with a 3p gain to 159p.

Second-liners were generally stronger, although market favourite Kerry was one of the few exceptions with a 10p fall to 525p. Other food stocks either closed unchanged or higher.

Avonmore - one of the best performers of the last couple of weeks - was unchanged on 155p, while Waterford Foods gained 2p to 112p ahead of results next Monday. Waterford is expected to continue the trend of good results from the sector and profits of around £41 million and earnings per share of around 11p are expected.

Fitzwilton gained 1 1/2p to 45 1/2p in a late deal, Elan dealt up £1.25 to £40.50 on reflection on the huge Athena acquisition, Green gained 10p to 220p after a Natwest recommendation, while Unidare dealt up 10p to 245p after Mr Dermot Desmond's IIU disclosed that it has built up a 5 per cent stake.