Share prices bounded ahead on the Dublin market boosted by a combination of factors, including the G7 investment package, a 3 per cent recovery in Tokyo, speculation that the Bank of England monetary policy committee will cut interest rates this week and a strong opening session on Wall Street.
Further gains seem likely in the days ahead with the same factors that drove the market ahead yesterday still sending cash into equities.
Financial shares were generally stronger, but AIB went against the upward trend and eased back slightly to 950p. Bank of Ireland was the best of the financials with a 20p jump to £12.50. Anglo Irish was boosted by the Irish Life/Irish Permanent merger talk and was 6p higher on 167p with a view in the market that Anglo Irish, at these levels, is an attractive bid prospect in a consolidating banking sector.
Irish Life and Irish Permanent themselves seem to have peaked after the initial euphoria following the confirmation of the merger talks and both were just 2p firmer on 592p and 952p respectively. First Active remained firm and was unchanged but well bid on 360p.
Industrials were firmer with CRH the star turn with a 45p gain to £10.20. Greencore and IAWS - two companies expected to feature in the bidding for the four Spillers flour mills that Tomkins is being forced to sell - were both well ahead with Greencore up 15p on 270p and IAWS up 12 1/2p on 260p. Smurfit was 6p higher on 116p while Waterford Wedgwood gained 3p to 63p.
Among the explorers, Bula gained the unenviable distinction of seeing its share price fall below a penny and closed down 1/8p on 7/8p. Tullow lost 5p to 85p while Ovoca was unchanged on 27p after its recent strong run.
