The Irish stock market got off to a flying start on the first day of trading in 2003, gaining close to 3 per cent as stock markets around the globe gathered momentum, writes Jane O'Sullivan, Markets Correspondent

Settlement Date: January 7th

A surprise surge in US manufacturing data eased concern over the world's largest economy and drove the US market, and most European indices, higher.

"People are wiping the slate clean with the New Year here," said one US dealer. "I think 2003 will be an up year."

In Dublin, dealers said financial stocks were the main drivers of the ISEQ, which closed 114 points or 2.86 per cent higher although volumes remained generally light.

AIB gained 54 cents to €13.40, Bank of Ireland was up by 33 cents to €10.08 while Anglo Irish Bank added 20 cents to €6.98. Irish Life & Permanent also joined in the banking rally, closing 31 cents higher at €10.61 while First Active gained 20 cents to €5.60.

Elan was another strong performer on the day, surging by 55 cents, or nearly 27 per cent, to €2.60 following positive studies of Antegren, one of its pipeline drugs, in a US medical journal.

Elsewhere, performances were more mixed. Ryanair added 15 cents to €6.90 but CRH logged a more modest gain of six cents to close at €11.81, while Jurys Doyle lost 20 cents to €7.00 ahead of the release of interim results next week

There was good volume in Independent News & Media with just over five million shares changing hands as the stock added five cents to €1.60.

In Britain, the FTSE 100 gained 1.75 per cent in value, helped by a strong performance from Vodafone, which was up by 3.5 per cent.