MARKET REPORT:ANOTHER STRONG performance from financial stocks saw the Iseq surge through the psychological 5,000 mark in early morning trading to eventually close the day 3.39 per cent stronger, as it added on another 166.04 points to 5,060.51.
In line with other markets, bank shares were buoyed by good news coming from the United States, where Bank of America posted better-than-estimated earnings.
An impressive performance saw Anglo Irish Bank add on 56 cent to €5.96, a gain of more than 10 per cent. Irish Life & Permanent also its share price surge by 6.7 per cent, as it added on 38 cent to €6.05.
Bank of Ireland added on 37 cent to advance by more than 6 per cent to €5.94. AIB's gains were more modest, as it closed 3 per cent stronger at €8.76.
But given the bloodbath of recent weeks many traders are remaining cautious about the sustainability of the rally, with some still attributing the strong recovery in bank shares to short covering as short sellers are forced to formalise their positions.
"It's more technically driven than fundamentally so," said one.
Apart from the strong performance by the financials, which enjoyed strong volumes, it was largely a lacklustre day on the market, although construction stocks attracted some interest.
Grafton saw its share price gain more than 9 per cent, as it tacked on 30 cent to €3.58, with 1.4 million shares changing hands. Kingspan also enjoyed strong trading, picking up more than 8.5 per cent to €7.28. CRH picked up 27 cent to €17.92. Elsewhere, Elan saw strong gains as it added on €1.36 to €22.51.
However, like most European airlines, Ryanair was under a bit of pressure as oil hovered close to the €130 a barrel level. It slipped back 11.5 cent, or 3.57 per cent, to €3.11 by the close of business.
