The phenomenal demand for the main financial shares meant that the Irish market bucked the downward trend on most international markets. But exclude the major financials and the market was a desert, with no institutional demand for most of the industrial stocks. The financial shares now make up more than 50 per cent of the index, with AIB alone now accounting for a quarter of the value of the entire Dublin market.

Dealers see little change in the offing with strong demand from overseas continuing to support the major financial shares, together with a growing lack of interest in the smaller capitalisation stocks. Of the industrials, only CRH is attracting strong investment interest. CRH is seen as a special case as it is a certain inclusion in any transnational sectorbased investment strategy.

There were some indications that the surge in the financials is running out of steam. Both AIB and Bank of Ireland were offered last night at their

closing levels. Earlier, however, AIB dealt in large volumes and closed up 10 cents on #17.70 (£13.94) after peaking at #17.90, while Bank of Ireland was 69 cents higher on #20.39 - the equivalent of the final sterling-denominated deal of £14.30 sterling.

The merger partners also continued to move ahead, with Irish Life up 10 cents on #9.40 (£7.40), while Irish Permanent soared 50 cents to a new high of #15.00 (£11.81). This means that the merged Irish Life & Permanent has a value of #4.3 billion (£3.4 billion) - a £600 million increase since the merger of the two groups was announced in mid-December.

CRH drifted 7 1/2 cents lower on #13.75 (£10.82), but even the beginning of asset sales by Smurfit Stone could not boost Smurfit which was two cents weaker on #1.64 (£1.29).

(# - Euro)