Share prices reacted positively to the overnight recovery on Far Eastern markets and the afternoon surge on Wall Street after the publication of the purchasing managers figures which indicate a slowdown in the US economy. Most of the leading shares moved ahead, but there were some exceptionally strong gains for selected industrials in the wake of excellent half-year results. With analysts rushing to revise full-year forecasts upwards, Kerry jumped 15p to a new high of 720p while Kingspan jumped 100p to a new high of 1100p, bringing the rise in the share price since the beginning of the year to more than 100 per cent.

Among the leaders, AIB gained 5p to 571p while Bank of Ireland was 6p higher on 770p. CRH results were ahead of forecast and the share jumped 10p to 742p while Smurfit was 2p higher on 222p ahead of half-year results today.

Elsewhere, Fyffes was 2p higher on 94p, Greencore gained 3p to 318p, Ryanair was 5p higher on 365p while DCC was 2p higher on 432p.

With treasury bond prices jumping sharply after the publication of the purchasing managers' figures, gilt prices in Dublin were firmer but failed to match the gains in other international bond markets.

Turnover was described as light, with dealers also keeping an eye on the domestic Exchequer figures.

The Exchequer surplus came in below consensus forecasts, but not by enough to cause the markets any significant worries.