Strong gains by the two big banks and by Elan drove the ISEQ ahead by 1.5 per cent in strong trading on the Dublin market. There is a growing belief that the weakness in bank shares in recent weeks may be coming to an end. A good set of figures from Bank of Ireland today should be the spark that bank shares need to push them ahead further and regain some of the ground they have lost to British and euro zone banks in the past few months.

After its 5 per cent rise on Monday, Bank of Ireland remained in strong demand, adding another 42 cents to €19.22 (£15.14) in a late sterling-denominated deal. AIB was 40 cents firmer on €14.35 (£11.30).

Among the industrials, Smurfit did not suffer from the overnight weakness in the US packaging sector and was unchanged on €2.54 (£2.00) in a sterling deal after hours. CRH also saw some sterling dealing in after-hours trade and was 11 cents higher on €18.26 (£14.38).

Second-liners were mixed, with food stocks like Glanbia and Golden Vale weaker. Glanbia lost 7 cents to €1.80 (£1.42) while Golden Vale eased 2 cents to €1.12 (£0.88). Independent continued its strong run and was 5 cents firmer on €5.25 (£4.13). The strong rise in the Independent share price is due to a number of factors, including the potential boost to the value of its Princes Holdings shareholding as a result of the staggering price NTL has paid for Cablelink. Ryanair saw renewed demand and was 25 cents higher on €8.85 (£6.97).