Iseq:2,879.20 (+102.65) Settlement date:May 31st

THE “OUTRIGHT panic” on markets on Tuesday has been reversed, “at least for the time being”, a Dublin broker reported yesterday.

Bank of Irelanddelivered the star performance on a day that saw the Iseq index regain almost 4 per cent and outpace European equities.

The bank’s ordinary stock had been trading up about 10 per cent for most of the day but a high close meant that it gained about 20 per cent over the session, bringing it to 80 cent.

The backdrop of rebounding European markets was thought to have boosted the bank. According to one broker, it also seems that an “exhaustion point” has been reached in terms of investors selling their “nil-paid” shares, which entitle them to buy discounted ordinary shares under the bank’s rights issue. This is believed to have contributed to yesterday’s gains.

Elsewhere in the financials, AIBalso put in a strong performance, adding 9 per cent to close just below €1.00.

Cyclical plays also got a decent lift, with names such as CRH, Ryanair and Aer Lingus all recording strong gains.

Cement giant CRHbroke through the €18.00 mark at one point. Although it had slipped back to €17.78 by the close, it was still up almost 4 per cent over the session.

Rival airlines Ryanairand Aer Lingusadded almost 6 and 9 per cent respectively, bringing them to €3.26 and 71 cent.

C&Cand Greencorehad decent numbers out on Tuesday but failed to get much traction due to the widespread sell-off on stock markets that day.

However both names were lifted yesterday, with the cider producer rising about 3.5 per cent to €3.32, while the convenience food group gained more than 5 per cent to €1.28.