Strong gains on international markets, especially among telecom stocks, helped the Irish market to its best day for some time with the ISEQ index closing just 44 points short of its October 6th all-time high. The tone on stock markets has improved dramatically in the past couple of weeks and dealers believe that a new high is likely to be notched up in the next few days.

Given the huge gains by telecom stocks after the outcome of the Italian mobile phone auction, Eircom was one of the best performers in Dublin and gained 17 cents to €2.95. This might still be a long way from the €3.90 flotation price, but it is also a big improvement on the €2.35 of a few weeks ago. Where the share goes from here will depend on international telecom markets and the outcome of the talks with Vodafone on an Eircell takeover.

But the gains were across the board and financial shares were in good demand although volumes were pretty thin. AIB jumped 25 cents to €11.55 while Bank of Ireland was 21 cents firmer on €8.60. Anglo Irish was the best of the financials with an 11-cent gain to €2.65. Irish Life and First Active confirmed more small-scale buybacks and both were marginally higher on €11.25 and €2.14 respectively.

Among the industrials, good third quarter results from Smurfit Stone and a rise in SSCC share price failed to support Smurfit which was one cent easier on €1.97. CRH gained 32 cents to €16.60, Independent was 20 cents firmer on €4.00 while Waterford Wedgwood hit a new high with a six-cent rise to €1.42.

Among technology shares, Parthus's fall ahead of a $200 million plus share issue was halted and the share was 4-1/2p higher on 272p sterling. Baltimore also bounced back after recent selling and closed up 50p on 532p sterling.