Shares in Dublin surged higher yesterday, led by gains in the financial sector after the country's biggest bank released better-than-expected results for the first six months of 1997.
Allied Irish Banks, which started the day at 595p, said it made profits of £242.2 million for the half-year. Shares in the company saw massive interest, and its price soared to an all-time high, closing up 40p, almost 7 per cent, at 635p.
"AIB dominated the market, the focus of all the attention," said one dealer. "Between two and a half and three million of its shares changed hands in Dublin and London alone."
"They produced a great set of numbers, and the markets not only in Dublin but in London and New York reacted very positively," said an analyst.
Late in the session, AIB's rise slackened slightly, dealers added, with rumours in London of a share buy-back. The company, which has shareholder approval to purchase 50 million of its own shares, would not comment.
Swept along in AIB's wake, Bank of Ireland also made significant gains throughout the day, climbing 16 1/2p, from 822p to 838 1/2p.
Analysts said that because AIB's results were so encouraging to investors, many presumed that Bank of Ireland would announce similar profits when it reported later this year.
Elsewhere in the financial sector, Irish Life gained 3p to close at 363p, while Hibernian remained steady at 402p. Irish Permanent climbed 7p to end trading at 670p.
Among the leading industrials, CRH gained 6 1/2p and closed on 681 1/2, while Smurfit dropped through profit-taking by 1p, ending the session at 208p.
Property and development group Abbey, which had earlier reported an increase in pre-tax profits to £9.1 million, saw its share price climb 12p to end the day at 230p. Green Property also made gains, rising 5p to 365p, after reporting a rise in its interim pre-tax earnings of £5.6 million.
In the food sector, Greencore gained 2p to 330p, while Kerry climbed 4p to 669p.
Elsewhere, Independent Newspapers gained 5p to end at 415p, while Ryanair jumped 10p, to 390p.
