The Irish market comprehensively outperformed its European peers today as banks returned to favour with investors and reports of a CRH acquisition boosted the Iseq’s biggest stock.
Even a five-week high close of 251.15 from the Dow Jones Stoxx 600, which measures leading stocks in 18 European markets, was not enough to match the Iseq, which gained 2.59 per cent to close at 3032.38 this afternoon.
The Stoxx 600 gained 0.6 per cent, while in London, the benchmark FTSE 100 ended the day with a similar gain to close at 5328.66, which was 34.67 points ahead of where it opened this morning.
The banks bounced back from dismal performance yesterday to make double-figure gains. AIB was up 18.74 per cent at €1.229, following a day yesterday when it threatened to slip below €1.
Its main rival, Bank of Ireland was up over 11 per cent at €1.352. It came close to 80 cent at one stage in Monday's trade.
Dealers said that gains made by both institutions' American Deposit Receipts (ADRs) in New York earlier today helped boost both banks' performances.
Developments in the US were responsible for a near 3 per cent increase for CRH, which closed at €19.492.
Local papers carried reports that its main US materials subsidiary, Oldcastle, has bought a smaller rival, Wheelers, in San Antonio, Texas. Wheelers has sales of $200 million a-year and employs 500 people.
The deal would be the first significant acquisition by the Irish building materials giant for some time.
Along with this, there was positive data from the US and UK housing markets today.
The company accounts for around one third of the Iseq, so its 2.95 per cent gain had a noticeable knock-on effect.
Elsewhere, Ryanair, added 1.24 per cent to close at €3.43. Its smaller competitor, Aer Lingus, gained 9.62 per cent to close at 57 cent.
Dealers suggested that Ryanair's strong performance was "dragging Aer Lingus along with it".
