The Irish stock market ended 24 points higher, at a new year peak, as a continued good performance from financial shares provided some protection from the sharp downturn in European stocks.
Dealers said a number of factors had combined to support the banks which, given the general rout in technology shares, began to look attractive as a defensive option.
The prospect of lower interest rates also underpinned financial stocks while traders reported some interest in picking up AIB shares ahead of results next week.
The Finance Bill, despite the inclusion of a new saving scheme which should bolster banks' business, was not really a factor, they said.
Bank of Ireland closed 1.7 per cent higher at €10.17 while Irish Permanent gained 2.1 per cent to €13.07. AIB added 0.3 per cent to €12.14 while Anglo Irish Bank added 1.3 per cent to €3.71.
Elsewhere, the picture was more mixed. Eircom lost 1.6 per cent, or four cents, to €2.56 as Vodafone, which has agreed to buy Eircell, plunged by more than five per cent. The mobile phone giant said a regulatory probe could derail plans for the sale of its Italian telecoms group Infostrada.
CRH was also down, losing 0.6 per cent to €19.32, although dealers said trading volume in the shares was light.
Among Irish technology shares, Iona was up nearly 5 per cent at €62.00 after Thursday's $300 million acquisition of Netfish Technologies in the US. But Baltimore fell by 4.5 per cent to 312.25p in London and was down more than 9 per cent on the Nasdaq by the close of trade in Dublin.
