Shares on the Dublin market have soared ahead in value with financial stocks leading the rally. All of the financial stocks managed to make up substantial ground on the back of strong demand, with AIB, Bank of Ireland and Irish Life attracting most activity.
Bank of Ireland saw the single biggest gain by close of business, with the shares trading up 47p to £11.30. AIB also forged ahead, adding 20p at 920p, while Irish Life's strong run continued, with its share price gaining 35p to close at 505p.
The 24 per cent rise in the Irish Life share price this week has fuelled speculation that it could be the subject of a takeover bid, possibly from one of the major British financial institutions, although no specific names have been mentioned. Some brokers have also suggested the stock may have been oversold in recent months and may just be coming back to its normal price range.
The other financials also had a good day, with Anglo Irish Bank rising to above 149p in a sterling trade, up over 8p. First Active went 20p higher to 290p with still no sign of a strategic investor taking a sizeable stake in the newly-listed group. Irish Permanent also moved ahead, with the stock gaining 10p yesterday to close at 790p.
Activity outside of the financials was fairly muted. Those notching up gains included, Avonmore Waterford, up 5p to 225p, CRH up 21p to 854p and Greencore up 10p to 260p, while Kerry put on 30p to 810p. Smurfit was unable to move in line with the firmer tone in the market, with the shares trading down 2p to 106p, while Elan took a hefty tumble, sliding to £40.88, down 112p on the day.
In company news, CRH announced the appointment of outgoing IDA Ireland chief executive Mr Kieran McGowan as a non-executive director. And Powerscreen said it has now dispatched an explanatory circular to its long-suffering shareholders containing fuller information on the proposed disposal of most of the business, assets and the assumption of certain liabilities of its US subsidiary. It has also called an extraordinary general meeting for October 22nd next. Meanwhile, Powerscreen director, Mr Wilfred Moores Caldwell, purchased 3,400 shares at 80p each. Following the purchase, Mr Moores Caldwell will hold 0.007 per cent of the group's total shares equal to 6,900 shares.
Documents lodged at the Stock Exchange, also show Dr Tony O'Reilly's stake in both Providence Resources and Arcon now stands at 43.75 per cent following the acquisiton of Fitzwilton by Stoneworth Investment.
And the National Treasury Management Agency has announced that, in accordance with the terms of the prospectus of the variable rate treasury bond 2000, the rate of interest from October 19th next will be 1.2 per cent. The rate is based on a reference rate of 4.8266 per cent less a fixed margin of four hundredths of 1 per cent.
