Iseq: 3,273.62 (+15.93) Settlement date: September 17th

THE DUBLIN market outperformed its European peers yesterday, gaining about 0.5 per cent to 3,273.62 on the back of a strong performance by the banking sector and index heavyweight CRH.

Following media speculation over the weekend that the Government may have to take a stake of 70 per cent in

Allied Irish Banks (AIB)

in the absence of private investment, the bank lost ground in early trade. However decent buying interest in the three banking stocks emerged over the course of the session, with the result that

AIB

closed the day up almost 2 cents at €2.60.

Bank of Irelandand Irish Life Permanentrose by almost 5 per cent and 2.5 per cent respectively, to finish at €2.84 and just under €5.62.

Cement producer CRHoutperformed in the construction industry on a day when most of its peers ended in negative territory, and added some buoyancy to the Iseq. It closed up 1.24 per cent – or 23 cents – at €18.73.

Former State carrier Aer Linguswas marked up by 1.35 per cent – 1 cent – to 75 cents.

The rest of the market took its lead from stock exchanges around the world which were fairly weak on the day.

Recent media reports have suggested that Paddy Powermay be looking at establishing an online gambling presence in France, but this remains speculation as the company has not made any announcement in this regard, and its stock price slipped by 15 cents yesterday to €19.55.

Meanwhile, although speculation is mounting that Ulster Bank is considering selling Liam Carroll's 29.5 per cent stake in Greencore, the volumes traded in the stock yesterday were below average.

It closed the session 5 cents off at €1.53, but brokers pointed out that only 160,000 shares changed hands on the day.