Stocks buoyed by news of US bank bailout repayments

Market report:IRISH STOCKS edged up on a generally quiet day when a key influence on markets was news that 10 US banks were cleared to repay $68 billion (€48.7 billion) to the troubled asset relief programme (Tarp), indicating that stability is returning to the sector in the US.

Late on Tuesday, the US Treasury said the banks were free to buy back the preference shares held by the federal government.

Dealers said markets across Europe gained between 0.5 per cent and 1 per cent on the news.

The Irish banks were the most obvious beneficiaries, with Irish Life Permanent taking the lead and adding almost 7 per cent to €3.958.

AIB jumped 2.32 per cent to close at €1.985, while its rival, Bank of Ireland, added 2.04 per cent to close at €2.

Building materials giant CRH led the way in its sector, gaining 2.3 per cent to €17.80. Dealers said volumes in the stock were strong, with about five million units changing hands in Dublin.

DIY and builders’ merchant Grafton added 0.6 per cent to close at €3.10. Insulation and flooring specialist Kingspan rose 5.6 per cent to close at €5.015.

Apart from CRH, dealers said most shares were lightly traded.

“Everything is ticking up on the news about the Tarp repayments but otherwise it’s a quiet day and most stocks are a bit light,” one dealer said.

Independent News Media, which holds its annual general meeting tomorrow, saw its price slip 3.85 per cent to 25 cent.

Ryanair, which had a good run last week, fell 0.28 per cent to €3.60.

Oil gained on New York markets yesterday, topping $71 a barrel for the first time in seven months, forcing a slip in share prices later in the day. Dealers suggested the impact of this may be felt as the markets open this morning.

Settlement date: June 15th