Iseq: 2,364.18 (+78.41) Settlement date: April 7th

THE GLOBAL bounce in equities that began in the US on Wednesday night and gained strength in Asia overnight hit Irish shores yesterday and lifted the Iseq by 3.43 per cent or 78.41 to close on 2,368.18.

The financials led the rally with the Iseq Financial Index adding 18.49 per cent to 614.27.

One Dublin trader said that at the levels the Irish banks were trading, they “are priced at option levels”. Buyers, including overseas hedge funds, were hoping to make a short-term return.

AIBwas the strongest performer gaining 23.1 per cent to €0.88, while Irish Life & Permanentadded 18.3 per cent to finish on €1.55 and Bank of Irelandwas up 17.2 per cent to €0.68.

Another dealer said that there was a “strong view” that there might be good news in next Tuesday’s budget for bank equity holders – possibly a “bad bank” that would take bad loans off their books.

Construction giant CRHwas up 1.73 per cent at the close, which was less than peers in the sector across Europe, some of which were up as much as 14 per cent. Traders noted that CRH had made strong gains in recent weeks so it was not surprising it did not rally as strongly.

Transport-related stocks in the US made good ground and this seemed to feed through to the Irish airlines which gained over 5 per cent. Ryanairadded 15.5 cent to close on €3.10, while Aer Linguswas up just over 3 cent to €0.63.

The rally also fed through to second-tier stocks that have been bereft of buyers of late. Graftonand Kingspanwere two that benefited. Traders noted that while volumes weren't huge, it was positive "to see them join the party".

While traders feel the Irish and global markets may have turned a corner, they pointed out that sentiment could change very quickly.