IL&P takes lead as market rebounds

Dublin report:   The Irish market had its first positive close in four sessions yesterday as markets around the world rebounded from the decimation seen on Monday.

The Iseq index climbed 1.6 per cent, to end the day at 7,767, though dealers reported relatively light trading volumes.

Irish Life & Permanent was one of the stars of the day, rising as much as 6.4 per cent, before falling back slightly to close up 5.5 per cent, or 82 cent, to €15.68.

Dealers could pinpoint no particular reason for the stock's outperformance, though they welcomed the change in sentiment.

Anglo was also a strong performer, though lost some ground as the day progressed, closing up 3.8 per cent, or 44 cent, at €12.20. Earlier in the day the shares traded as high as €12.32.

Bank of Ireland meanwhile didn't fare so well, though it did manage to end the day in positive territory. The stock added just 1.1 per cent, or 13 cent, to end the day at €11.91.

Merrill Lynch yesterday added the bank to its list of "least preferred" banking stocks, citing slowing economic growth in the Republic and the UK and higher borrowing costs in European money markets.

Elsewhere Smurfit Kappa managed to climb 1.9 per cent, or 26 cent, to €13.69 despite the paper and packaging group warning that its underlying profits for this year will be near the lower end of current expectations as a result of higher costs.

Independent News & Media also put in a rare positive performance, climbing 2.6 per cent, or almost 7 cent, to end the day at €2.64.

Ryanair continued with its gains with shares in the airline adding 1.6 per cent, or 9 cent, to close at €5.58. Dealers reported ongoing interest in the stock ahead of its second-quarter results next month.

Settlement day: October 26th

© 2007 The Irish Times

This article appears in the print edition of the Irish Times