Bank shares drive market rally

The Iseq index gained 30.32 points yesterday to close at 3,238.64, in line with other European and world bourses.

The market rise was led by bank shares benefiting from the ECB’s latest liquidity boost, while cheaper borrowing costs for Spain on the bond markets buoyed investor confidence.

In the financial sector, the Department of Finance has outlined lending targets for the pillar banks in the coming two years. Under the plans, each bank (AIB and Bank of Ireland) will be required to lend €3.5bn to the SME sector in 2012, with €4bn apiece in 2013 and that can take the form of new loans and/or restructuring. Bank of Ireland added 0.3c to 13.8c. AIB slipped 0.2c to 12.5c, while Irish Life & Permanent gained 0.4c to 4.7c.

In the construction sector, CRH advanced 24c to €16.28. Grafton Group increased 2c to €3.44. Kingspan was 5c better at €8.15.