Despite a sharp rally from financial stocks, the Irish market under-performed its European peers today, rising by just 6 per cent in contrast with the average 10 per cent hike experienced in the UK, France and Germany, as markets advanced on the back of the bail-out of Citigroup in the US.
The Iseq finished the day up by 141.14 points at 2,461.85.
Merrion Pharmaceuticals was the main winner on the day, advancing by 90 cent, or 42.9 per cent, to finish up at €3.00, after it announced a multi-million euro deal with Novo Nordisk to develop oral diabetes products.
Bank stocks responded well to weekend reports that a consolidation or recapitalisation in the sector was imminent, and rose by 6 per cent on average.
Anglo Irish Bank was the strongest on the day, adding 8 cent, or 8.4 per cent, to finish the day at almost €1.00. AIB, which hasn't attracted as much speculation of late as its counter-parts, rose by 14 cent, or 6.5 per cent, to €2.29.
Although Bank of Ireland advanced by as much as 20 per cent at one stage, it finished the day up by 7 cent, or 5.6 per cent, at €1.32, although brokers noted that there was strong interest in the stock.
Irish Life & Permanent climbed by 4 cent, or 3.6 per cent, to close at €1.15. However, according to a broker there is likely to be some sell-side pressure on the stock this week ahead of its departure from the MSCI index on Friday.
Construction stocks were strong across Europe, and Dublin was no exception, although stocks listed on the Irish market didn't match the heights reached elsewhere.
CRH advanced by €1.23, or 8.1 per cent, to close at €16.51, while Kingspan got a boost from an announcement in the UK budget regarding insulation support. It finished the day up by 45 cent, or 16.4 per cent, at €3.20.
Smurfit Kappa advanced by 26 cent, or 14.8 per cent, to finish up at €2.01, although it did so on weak trading volumes.
Ahead of its full-year results tomorrow, Greencore added 9 cent, or 9 per cent, to climb to €1.09.
Less positive were Irish Continental Group, which lost 95 cent, or 6.4 per cent, to close down at €14.00, and Kerry Group, which lost 23 cent, or 1.4 per cent, to finish at €15.80.
In the US, Citigroup, which fell by 60 per cent last week, rebounded by more than that today, following the US government's bail-out of the bank.
The move led to a rally amongst financial stocks, and by 11.13, the S&P 500 was up by 4 per cent at 832.04, while the Dow Jones Industrial Average had advanced by 275.34 points, or 3.8 per cent, to rise to 1,437.23.
Across Europe, the US rally led to sharp rises as financial and construction stocks advanced. The Dow Jones Stoxx 600 Index added 8.2 per cent to climb to 197.15, while benchmark indexes gained in all 18 western European markets. In Germany, the DAX added 11 per cent, as Hypo Real Estate Holding AG surged by 20 per cent on the back of a government debt guarantee, while in France, the CAC 40 increased by 9.4 per cent.
In the UK, the FTSE 100 experienced its strongest rally ever, as stocks rose sharply on the back of the Citigroup bail-out. It closed up by 372 points, or 9.8 per cent, at 4,152.96.
