Banks and CRH gain on hopes of US recovery

DUBLIN REPORT: Iseq: 2,163 (+17.37) Settlement day: March 26thTHE DUBLIN market ended in positive territory last night as financials and CRH were boosted by the US government plan to buy up to $1 trillion of troubled assets.

CRH closed up 1.5 per cent at €16.45 continuing a recent good run that has seen the stock climb from €13.22 since March 9th.

Brokers said there was little specific news driving the price other than an expectation it was well-placed to benefit from any US recovery.

Among the banks AIB was the day’s best performer adding over 5 per cent to 70 cent. It too has enjoyed a three-week rally rising from a low of 27 cent on March 5th.

Bank of Irelandadded over 3 per cent to close at 51 cent with over nine million shares traded in Dublin.

Irish Life and Permanentwas the only financial to fall, dipping over 2 per cent, a fall attributed by analysts to profit-taking after a strong close last Friday. The stock closed at €1.26.

Airline stocks were subdued today as oil remained over $53 a barrel. This reflects fears of an inflationary impact from the US plan and which could send commodity prices higher.

Ryanairclosed down 2 per cent at €2.94 while Aer Lingusgained over 1 per cent to 60 cent. Independent News and Mediaclosed down 13 per cent at 16 cent.

After reporting a pretax loss of €206 million for 2008, house-builder McInerneyclosed down 5 per cent at 9 cent. Its loss includes exceptional charges of €159.6 million.

While the results were slightly behind estimates, analysts noted the company has had a relatively good start to this year, particularly in the UK.

Following its inclusion in the Goldman Sachs conviction buy list last week, Kingspanmaintained its recent momentum to close up 4 per cent at €2.75.