It was a case of too much money chasing too few shares as the Irish stock market soared to unprecedented levels in the early part of the week, before some modest profit-taking brought it back slightly. "Quite frankly, this market is awash with cash and few want to sell for fear that they won't be able to get back into the market," was the comment from one fund manager.

That said, most of the bigger investors feel that, on the basis of the usual methods of comparison, the Irish market is fully valued. But comparative valuations seem to have gone out of the window, with institutional cash flowing at enormous levels and overseas investors clamouring for stock that is just not there. The number of double-digit share prices - Bank of Ireland, Iona, Grafton and Irish Continental - is one telling indication of how the market has been driven forward.

The major financial shares have been the focus of the phenomenal bid interest and there seems no sign of any slackening in the demand from overseas investors. AIB spent the week flirting with the £7 billion market capitalisation barrier without making a breakthrough but that distinction will be probably be reached over the next week or so.

At this stage, the ISEQ Overall Index is at a level most analysts did not expect to see until well into the second half of the year and further changes to ISEQ forecasts seem inevitable. The latest market-sensitive figures - yesterday's non-farm payroll and average earnings figures in the US - were relatively benign, with the earnings figures in particular suggesting that the Federal Reserve need have no worries, for the moment, about inflation.

The big jump in the market provided a solid basis for first dealings in Athlone Extrusions, which reached a high of 120p before settling well bid at around the 110p level. Athlone is expected to be the first of about nine or 10 new companies on the market this year, a solid level of corporate activity.

The continued share-buying in Fyffes by the McCann family through their Balkan Investments vehicle meant that the fruit distribution group remained well in demand although 145p now seems to be a ceiling for the shares. With the McCanns now outside their window period for dealing in Fyffes shares, the market will be looking towards corporate developments to drive the share forward.

Golden Vale shares remained well bid at a high of 110p ahead of next week's results and possibly news on the acquisition front. Rye Valley Foods has had proposals from a number of potential buyers but Golden Vale has emerged as front-runner for the Monaghan group. If Golden Vale is successful in its bid, it will be a major strategic move away from the core dairy business towards consumer foods. Any acquisition will probably involve up to £15 million with further capital investment required post-acquisition to increase capacity. Rye Valley had pre-tax profits of £1.2 million on sales of £28 million in 1996.

Kingspan was another strong performer, hitting a new high after this newspaper revealed its plans for a move into the Czech Republic.