Hopes of interest rate cuts in Europe, the UK and the United States was the main factor behind the strength of international stock markets yesterday and there were broad-based if modest gains for most of the leading Irish stocks.

But Ryanair was the undoubted star after a set of half-year figures that came in a full 20 per cent ahead of market forecasts. There was no great volume in Ryanair with few holders of the stock willing to sell, and the shortage of stock meant that the shares soared 13 per cent to close €1.32 higher on €11.52. Brokers are now pencilling in a 12- month target of €14.00 for the shares.

Most of the large capitalisation stocks were firmer, but CRH is still suffering from the after-effects of last week's profits warning and drifted three cents lower to €15.93. Elan, however, traded up slightly.

Banks are usually the major beneficiaries of interest rate cuts and there were gains across the board, with AIB up 15 cents on €10.75, while Bank of Ireland was also 15 cents higher on €9.85.

Irish Life went into the market and bought 173,900 shares at €12.15 - the shares closed 28 cents higher on €12.10.

Independent was also in buyback mode and bought 325,000 shares at €1.55. The shares had earlier fallen 15 cents to €1.50 before closing down eight cents on €1.57.

Arnotts bought back 140,000 shares at €6.30 and closed unchanged on €6.50.

With the Nasdaq up 3 per cent in the opening session, there were big gains for most of the Irish technology shares and Iona, Riverdeep, Parthus and Smartforce were all well up.