Expectations of a cut in US interest rates when the Federal Open Markets Committee meets today buoyed up European bourses yesterday and the Irish Stock Exchange followed suit, rising by 2.39 per cent with most of the impetus being provided by the financial stocks.
"Buying interest here has been largely in the banking stocks," one dealer said. The financial index rose by 2.82 per cent reflecting a 30p rise in AIB to 970p, a 40p rise in Bank of Ireland to 1200p and a 10p rise in Irish Permanent to 810p. Hibernian was down 5p to 685p but Irish Life rose by 5p to 490p.
The rarely traded State-owned ICC Bank, which may soon to be privatised, was up 15p to 100p in the first deal for almost a year after the closing date passed yesterday for the submission of tenders to advise the Government on its sale.
The bank announced a joint venture partnership yesterday with NMB-Heller to enter the invoice discounting market with the newly-formed company, ICCHeller.
The industrials also saw some upward movement. CRH rose 10p to 835p on the back of its acquisition of the French building merchants Raboni and 80 per cent of Prefaest for £14.3 million. Elan, the third most valuable company on the stock exchange, firmed 358.5p to 4973.5p as leading pharmaceutical stocks are increasingly seen as good buys.
Clondalkin remained stable at 440p, Ryanair was down 15p to 445p, and Smurfit was down 1p to 104p following stockbroker Merrill Lynch's downgrading its outlook on paper industry companies. The Leixlip packaging firm, ILP, slipped back by 32 per cent, or 11.75p, to 25.25p.
Jurys was up 5p to 555p following last week's announcement of a £200 million takeover bid of the Doyle group.