Financials rise on back of positive sentiment

Market Report: Financial stocks were the focus activity on a quiet day that saw the Iseq index of Irish shares rise 63

Market Report: Financial stocks were the focus activity on a quiet day that saw the Iseq index of Irish shares rise 63.95 points, or 0.82 per cent, to 7,6896.78.

The country's biggest bank added 40 cent to close at €19 after 3.5 million shares were traded in Dublin.

Dealers said that there was no particular reason for the buyer's interest, apart from the fact that sentiment towards the sector was generally positive across Europe.

"Also, Irish banks have struggled a bit lately, so they looked like good value," one commented.

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Irish Life & Permanent added 35 cent to close at €20 on volumes of close to 600,000 units. Bank of Ireland remained steady at €21.88 and Anglo Irish also finished all square at €13.05.

CRH, the biggest non-financial stock on the market, added 12 cent to close at €28.46 after nearly 800,000 shares changed hands.

Dealers agreed that this was on the back of news that Holcim, a significant Swiss rival, announced during the day that it was raising €1 billion through a rights issue.

Ryanair dipped five cent to end the day at €6.95, although dealers said it traded at €6.90 in the course of Friday. Investors' lukewarn attitude to the stock is mainly the result of rising oil prices, although some traders argued yesterday that its impact would be neutral at worst.

"People are saying they'll buy at seven, and when it gets down there, they're saying they'll wait until it has a six in front of it, it's just one of those things," one dealer remarked.

Elsewhere in the market, C&C shed 30 cent to close at €6.50. Market watchers put the dip down to profit taking following a good run earlier in the week.

Kerry Group gained 25 cent to close at €20. However, the volume was small at 87,000 shares.

Waterford Wedgwood was the subject of renewed interest yesterday, with 6.5 million shares changing hands. It closed level at six cent.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas