DUBLIN REPORT: Iseq:3,044.97 (+20.05) Settlement date:March 19th

IRISH BANKS found themselves back in favour yesterday as investors bought into the sector in anticipation of positive news in the near future.

Results are expected soon from Bank of Ireland, Anglo Irish Bank and EBS and – according to media reports – Minister for Finance Brian Lenihan’s “state of the nation” banking address and the first transfer of loans to Nama are also set to take place in the coming weeks, all of which should bring greater clarity to the sector.

AIB rose 4 per cent – just under six cent – to €1.46 after announcing a bond exchange on Monday that could see the bank raise €400 million in fresh capital.

Bank of Ireland closed 2.4 per cent, or three cent, ahead at almost €1.24, while Irish Life & Permanent added a little over 1 per cent, bringing it to just under €3.20.

Outside the banking sector, the market was pretty featureless, but nonetheless the Iseq managed to recover some of the ground lost during Monday’s session, and closed up 0.66 per cent at 3,044.97.

Iseq heavy hitter CRH was one of the most actively-traded stocks on the day, and the construction company added 15 cent to €17.89, even though there was no major news to drive its sector forward.

Building materials group Kingspan was strong again despite the dearth of news, rising 4.7 per cent, or 28 cent, to €6.30.

DCC, which is due to leave a European stock index next week, was a little softer on the day and closed 14 cent down at just under €19.16.

Elsewhere, Irish Continental Group moved ahead in advance of results due out next Tuesday, and the stock rose 2 per cent, or 30 cent, to €15.30.

A good opening day for bookmakers at Cheltenham boosted Paddy Power’s share price by 22 cent, bringing it to €23.62.