Iseq rallies as markets regain ground

Irish bank shares surged today as markets across Europe regained some of the ground lost earlier in the week.

Banking stocks were the stand-out winners on the Irish bourse today. One broker noted that while the news of a €12 billion transfer of deposits out of Anglo Irish Bank and Irish Nationwide Building Society was "marginally positive" for the banks involved, there was nothing specific driving the sector's rally.

Irish Life & Permanent, which will receive €3.6 billion in deposits from Irish Nationwide, led the pack, gaining close to 10 per cent, or 8.5 cent, to 96.5 cent.

AIB, which is taking over €8.6 billion in deposits from Anglo, jumped more than 4 per cent, or about one cent, to 26 cent. However it was outstripped by rival lender Bank of Ireland, which gained more than 7 per cent, or 2.5 cent, to almost 37 cent.

Outside of the financials, United Drug delivered the strongest performance. The drug manufacturer finished almost 4 per cent ahead, or about nine cent, at just under €2.34.

Elsewhere, cement stock CRH was buoyed by a positive statement issued after yesterday's close by French peer Saint-Gobain. CRH soared to €16.80, before slipping back to €16.44. Although it closed off its highs, the stock was almost 3 per cent ahead on the day. Kingspan also found favour, and was lifted almost one per cent, or six cent, to €6.64.

Aryzta was among a handful of stocks to finish in negative territory. The bakery stock was 2.5 per cent, or 85 cent, off at €33.30.

National benchmark indexes climbed in 16 of the 18 western European markets today. The Iseq gained about 1.5 per cent to 2,943.35. France's CAC 40 Index rallied 1.5 per cent, while the UK's FTSE 100 Index rose 1.8 per cent and Germany's DAX Index advanced 0.8 per cent

Additional reporting: Bloomberg