The Dublin market gave a thumbs up to the proposed Irish Life/Irish Permanent merger and also pushed most financial shares ahead in a belief that the merger may be a catalyst for further rationalisation in the financial sector.
The financial index was up 1.5 per cent, but continued weakness at Elan - 14 per cent of the market - meant that the overall index was only marginally ahead on the day.
Irish Life and Irish Permanent have moved in tandem since the proposed merger became public and both were firmer, Irish Life up 9p to 600p, and Irish Permanent up 12p to 957p.
Other financials also gained ground, with AIB up 20p on £10.40, Anglo Irish was up 7p on 169p, Bank of Ireland 10p ahead at £13.65, and First Active adding 10p to 330p. Hibernian - seen as the next rationalisation target - was unchanged on 725p.
Industrials were generally firmer but Elan continued to lose ground in New York and this was reflected in a 180p fall to £41.40. CRH was 13p higher on £10.90, while Greencore recovered some ground. Technology tiddler BCO did not trade in Dublin but was 41p lower on 1071/2p sterling in London after sounding a profits warning.
Independent was 15p lower on 215p and is now back at the level where the group went into the market buying in shares a few weeks ago to support the price. It will be no surprise if further buyings take place if the share remains at this depressed level.
The New York markets may have done little yesterday but CBT managed to make some solid ground and was trading over $21/4 higher on $121/4 as the Irish market closed. Iona was another in demand and was trading $21/4 higher on $281/2.
