The latest bout of global merger mania had a galvanising effect on the Irish stock market, and yesterday's rise of over 2 per cent sent the market into territory that few expected to see before the end of the year. There may be misgivings in some quarters about the sustainability of this latest rally, but for the present equities are very firmly back in the ascendancy.

The planned merger between Deutsche Bank and Bankers Trust, Guardian's for-sale tag, the BTR-Siebe and AOL/Netscape mergers were the main factors driving the markets ahead and financial shares in particular were the beneficiaries. Bank of Ireland was the best performer with 42p jump to £14, but other financials were also well ahead with AIB up 30p to £10.77, Irish Life 20p higher on 605p and Irish Permanent up 10p on 930p. First Active was 20p higher on 340p.

There was strong demand for Anglo Irish Bank ahead of today's results and the shares closed up 8p on 187p. Pre-tax profits around £44 million and earnings per share around 11p have been pencilled in for Anglo, but it will be no surprise if those forecasts are beaten.

Among the industrials, CRH was the most in demand with a 23p jump to £10.58 although Smurfit was 1p weaker on 125p. The first meeting of the merged Smurfit Stone board was taking place last night, and there is speculation that today might see an announcement about the first batch of rationalisations.

Elsewhere, Greencore and IAWS - mooted as potential merger partners - both closed ahead on the day on 300p

Elan was the main beneficiary of the surge on NASDAQ, and was trading almost $1 1/2 higher over $71 as the Irish market closed. Iona, CBT, Trinity Biotech were all marginally firmer.