Iseq lifts as bank shares gain

The Irish index of shares was marginally higher today as a Europe-wide rally in banking stocks lifted financial stocks.

Shortly before 2pm, the Iseq was up 0.8 per cent to 2848.87, a rise of almost 23 points.

Shares in Bank of Ireland were up 1.67 per cent to 36.6 cent, while AIB rose 1.1 per cent to 27.1 cent. Irish Life and Permanent gained 2.6 per cent to trade at 87 cent.

Building stocks also gained, with CRH adding 1.7 per cent to trade at €15.04 and Grafton up 1.4 per cent to €3.70.

At the other end of the market, shares in Greencore were 5.9 per cent down, trading at €1.19 this afternoon. Earlier today, it was reported that businessman Ranjit Boparan has reached an agreement with trustees of Northern Foods' pension scheme. This could clear the way for a rival bid to Greencore's offer.

Aer Lingus was also lower this afternoon, as the company continued to deal with a dispute with staff over new working arrangements. By 2pm, shares in the airline were down 1.4 per cent to €1.025. Rival Ryanair was down 0.9 per cent to €3.46.

Elsewhere, Britain's top share index pushed higher by mid-session. At 1201 GMT, the FTSE 100 index was up 41.05 points, or 0.7 per cent, at 5,908.96, having yesterday reached its lowest closing level in five weeks.

Royal Bank of Scotland topped the FTSE 100 risers list, up 6.9 per cent on reports the part-nationalised bank could leave the government's asset protection scheme early. Fellow part-nationalised lender Lloyds Banking Group gained 1.8 per cent, while global heavyweight HSBC added 1 per cent as the banking sector rallied.

Energy issues provided the main strength for the FTSE 100 index as the crude price pushed back above $90 a barrel.

BG Group added 1.8 percent and Royal Dutch Shell gained 0.9 per cent, supported as well by initiations from Investec Securities, which started both stocks with "buy".

Additional reporting: Reuters