Market Report:The Irish market rallied strongly yesterday, outperforming its European rivals to close the day 2.61 per cent stronger at 9,548.84 as its recovery from last week's drop continued . 

Yesterday's gains came on the back of strong performances from Irish Continental Group and the financials, which were led by Anglo Irish Bank.

Reports of a proposed management buyout at Irish Continental saw the company's share price jump 22.12 per cent, or €3.45, to eventually end the day at €19.05.

Financials also put in a strong performance, buoyed by a very positive trading statement from Anglo Irish Bank.

Anglo's shares surged by more than 6 per cent to €16.35 on volumes of more than four million, after it forecast it would deliver earnings per share in the six months to March 31st, 2007, close to 40 per cent ahead of the same period last year.

That news had a positive knock-on effect for the other Irish banks, particularly AIB which was up 3.23 per cent, or 72 cents, to €23 by the close of business. Bank of Ireland enjoyed a strong day, picking up 40 cent to €17.40, while Irish Life & Permanent was 35 cent stronger at €20.95.

Paddy Power also closed the day in good shape as it continued to attract buyers and advanced 5.88 per cent, or €1.10, to close the day at €19.80.

Ryanair, which confirmed it would continue to oppose the second terminal proposed by the DAA for Dublin airport and which also announced a new route from London Stansted to Maribor, Slovenia's second largest city, saw its price jump 20 cent to €5.85.

Construction stocks generally had a good day with market heavyweight CRH tacking on 34 cent to close the day at €32.31.