Airlines, banks push Dublin market higher

The Iseq Index of Irish shares was in positive territory this afternoon as the impetus from the US government's take over of home loan giants Fannie Mae and Freddie Mac buoyed investors.

At 12.25pm the Dublin market was 2.2 per cent higher at 4,671, a gain of 102 points.

Irish financial shares were among the strongest performers along with airline stocks also lifted by a fall in oil prices.

Dublin analysts admitted a certain amount of relief that yesterday's 6.7 per cent gain – the sixth-highest one day rise - was not eroded. The loss of most of the trading day in London due to a trading glitch was also providing a level of momentum, brokers said.

Following yesterday's average gains of between 10 and 12 per cent the main banking stocks had to be satisfied with more modest rises today.

Bank of Ireland was best in class, rising over 5 per cent to €6.17 followed by Irish Life & Permanent, up 4 per cent to €7.57.

AIB gained a similar amount to reach €9.15 while Anglo Irish gained 1.3 per cent to €5.88. With crude oil prices fall by over $2 to $104.2 by 11.50am Irish airline stocks enjoyed a buoyant morning's trade.

Having traded up over 9 per cent this morning, Aer Lingus reached the midway point up just under 5 per cent to €1.70. Ryanair shares added 5.3 per cent to €2.78.

Elsewhere building related stocks also enjoyed a second positive day with CRH adding 2.7 per cent to €19.40 while Kingspan rose 1.9 per cent to €8.33.