SHARES in Dublin managed to claw back much of the week's losses yesterday, tracking an improved performance in London and New York.

In a relatively quiet market, investors were mainly focused on the financial sector, with a good deal of activity reported in the two main banks.

On the back of good demand for the share, AIB closed up 5 1/2 to 317. Bank of Ireland also moved ahead gaining 6p to close at 408p.

Other financial stocks also faired well, with Irish Life trading up 3p to 230p while Irish Permanent added a penny to 389p.

The leading industrials were largely ignored. In modest dealing,

CRH and Smurfit both closed unchanged at 585p and 163p respectively.

Second line stocks enjoyed mixed fortunes with many suffering substantial falls in thin volume trading.

The main casualties were Clondalkin, dealt down 15p to 490p, James Crean, which lost 10p to 215p and Grafton lost 15p to 615p. FBD also lost further ground closing down 10p to 205p, Jurys also fell 16p to 262 while the biggest drop on the day was in Adare, trading down 20p to 435p.

In the food sector, Fyffes drifted down 2/p to 101p, Golden Vale closed 2p lower at 64p while Greencore shed 4p to close at 302p.

On the gilt market, Irish Government bonds buoyed by a strong performance from Treasury bonds, gilts and bonds following comments from US Federal Reserve chairman, Mr Alan Greenspan.

A £100 million tap gilt issue by the National Treasury Management Agency in the 6.5 per cent bond due in the year 2,001 was easily absorbed.

Meanwhile the 8 per cent bond due in the year 2,000 was up 30p to £103.90 to yield 6.78 per cent.

The 10 year bond was at £102.85 to yield 7.44 per cent, a gain of 35p.