MARKET REPORT:THE DUBLIN market continued its recovery yesterday as financial stocks earned more support from investors. But dealers said that some of the momentum was lost in the afternoon as values dipped in the wake of weaker than expected numbers from the US.
Gains were lost after the US Institute for Supply Management said manufacturing contracted in September at the fastest pace since the country's last recession. The Iseq closed up 2.5 per cent at 3,641.29.
The four listed banks set to benefit from the Government guarrantee scheme announced on Tuesday were the strongest performers.
Home lender Irish Life Permanent was the best performer, adding 13.6 per cent to €5.509. Volumes were strong with 5.3 million shares changing hands in Dublin. Bank of Ireland rose 8.9 per cent to €4.30 with over 5.5 million shares traded on the day.
Anglo Irish Bank was up 8 per cent at €4.15. Investors bought over 7.8 million shares in the bank.
AIB was the poorest performer, adding just 1.7 per cent to close at €6. Trades in the bank's stock topped eight million. Outside of the financials, bookmaker Paddy Power was the best of large and medium-cap stocks, gaining 7.6 per cent to €13.20. Davy Research issued a note on its sector earlier yesterday which said that the Irish bookie offered better value than rivals Ladbrokes and William Hill.
Elswhere, insulation and building materials group, Kingspan, was bouyed by news that it had secured €330 million in credit from a group of banks. Its stock was up less than 1 per cent at €6.452, but had traded up by as much as 4.7 per cent earlier in the day.
Cider maker CC lost further ground on news that it had surrendered ground to its main British rival in London pubs. It closed over 7 per cent down at €1.764.
