Market surges back above 4,000

THE ISEQ index surged 383.62 points yesterday to close at 4,105.23 after a ban on shorting of banking shares, a potential bid for Irish Nationwide from Anglo Irish, and talk of more consolidation in the banking sector.

There was also speculation that Spanish financial giant Banco Santander was planning a bid for Bank of Ireland. AIB jumped €1.01 to €6.23, Bank of Ireland soared €1.42 to €5.20, Irish Life & Permanent moved up €1.04 to €6.14, while Anglo Irish Bank increased €1.11 to €5.46.

In construction, CRH gained 64c to €17.70, Kingspan added 26c to €7.50, while Grafton closed up 36c at €4.10. In other news, Ryanair gained 20c to €2.72, Kerry rose 40c to €20.50, C&C added 6c to €2.41, Elan added 41c to €7.64, while Independent News & Media increased 24c to €1.37.