Market Report:The Irish market had another good day yesterday, rising 1.1 per cent, to close at 7,862.

Dealers reported a relatively sluggish start to the day, which received a welcome boost at lunchtime when Countrywide Financial, the US's largest mortgage lender, said it expected to return to profit in the fourth quarter after weathering the worst of the nationwide housing downturn.

The Irish banks rallied on the news, with AIB having a particularly good day.

The stock rose 2.6 per cent, or 42 cent, to close at €16.90, as 3.7 million shares changed hands.

Bank of Ireland meanwhile added 2.4 per cent, ending the day 23 cent higher, at €12.25.

Anglo was also a gainer, though dealers reported significant selling pressure on the stock as more than nine million units traded.

The shares closed 1.1 per cent, or 13 cent, higher, at €11.48.

Elsewhere building materials group CRH had a good day, closing up 1.3 per cent or 36 cent, at €27.42. Dealers reported decent buying interest in the stock.

Grafton meanwhile came under pressure as UK rival Travis Perkins announced it is to make its Irish debut with the opening of its Wickes home-improvement chain here.

Travis Perkins said yesterday it had signed a franchise agreement with Irish property development group Moritz Holdings. Moritz will run the business and Wickes will supply products.

Shares in Grafton fell 2.5 per cent, or 20 cent, to €7.85.

Ryanair continued its recent climb, adding another 1.3 per cent, or 7 cent, to end the day at €5.68.

Independent News & Media had a rare positive day, rising 1.2 per cent, or 3 cent, to close at €2.63.