The phenomenal demand for the two big banks continued to drive the Irish market ahead. By yesterday's close, the ISEQ index is within 1.5 per cent of its April 1998 all-time high. Given the strength of trading on Wall Street last night, many in the Dublin market believe that the index will move into record territory before the end of the week unless some investors decide to take profit from the extraordinary 8 per cent gains in the first three days' trading of 1999.

There seems to be no sign of demand for the two big banks slackening. Yesterday AIB climbed another 91 cents to #17.40 (£13.70) while Bank of Ireland was 83 cents higher on #21 (£16.54).

For the first time there were some clear signs of overseas investment interest extending to the other financial shares. Irish Life jumped 53 cents to #8.75 (£6.89) while merger partner Irish Permanent was 70 cents higher on #14 (£11.03). First Active continued its steady rise and closed 22 cents up on #4.90 (£3.86) while Anglo Irish Bank was 3 cents firmer on #2.71 (£2.13).

Smurfit remained the centre of attention among the industrials. Boosted by a matching liner-board rise by Georgia Pacific, it jumped 13 cents to #1.80 (£1.42) although Smurfit Stone was trading marginally lower in New York. Industrial second-liners saw some demand, with DCC up 40 cents on #8.10 (£6.38), Fyffes up six cents to #2.09 (£1.65) ahead of full-year results on Monday and Kerry 35 cents higher on #12.20 (£9.61p). CRH remained in firm demand and was up 55 cents on #15.45 (£12.17).

The extraordinary rise by Esat was the main feature of the Irish stocks on Nasdaq. The share was trading firmly as the Irish market closed at an all-time high around $46.50 (#39.70). The surge in telecom stocks worldwide as a result of stock shortages among the European privatisation stocks and the merger mania involving Airtouch and its two suitors, Vodafone and Bell Atlantic, were the catalysts for the continued demand for Esat.

News that long-time investor Soros Capital has finally exited Esat had no impact on the shares - Soros has been gradually unwinding its 5.07 per cent stake over the past few months.