Markets returned reinvigorated from the May Day break with Dublin outperforming its European peers, all of whom finished the day with decent gains.

The gains were spread across the market with volumes strong, especially in the leaders. Traders were particularly pleased that the market had continued its advance despite the strong gains of last week.

"It would not have been surprising to see some profit-taking and that may yet happen but the longer this goes on, the more the belief that a recovery is underway will grow," said one trader.

AIB raced ahead to finish on €14.30, up 45 cents on the day. Bank of Ireland was 17 cents stronger on €11.28, while Irish Life & Permanent added 10 cents to €10.45.

Among the smaller stocks, Anglo Irish closed nine cents up on €6.92 having briefly broken through the €7 barrier at one stage. First Active, which went ex rights, was down 94 cents at €4.46.

On the corporate front, Jurys took the opportunity to guide analysts lower at its annual general meeting. While brokers acknowledge the company is being careful to ensure there is no surprise on the downside, they were marking down figures last night. Indications were that forecasts will come back 10 per cent for the full year. The share, which fell in the wake of the comments, eventually ended five cents ahead at €7.15.

Leading industrial CRH had a strong showing, rising 35 cents to €14.50, with heavyweights Ryanair and Elan also moving ahead - by six and 15 cents respectively to €6.14 and €3.55.

There was strong trade in Waterford Wedgwood but the weakening dollar saw the price slip a cent to 24 cents.