Dublin report: Following their positive performance on Tuesday, the banks yet again led the way, this time managing to lift the whole market by 1.5 per cent.

The positive sentiment was echoed throughout Europe, where the Iseq's counterparts also ended the day in positive territory thanks to a decline in the price of oil and also anticipation that the US Federal Reserve will hold US interest rates steady.

While the banks' momentum came on the back of the positive trading update from Bank of Ireland earlier in the week, the main beneficiary of yesterday's news was Ryanair.

Shares in the airline rose 28 cent, or 3.6 per cent, to close at €8.10 after oil fell to a six-month low. One dealer also said investors were anticipating some positive news from the company's annual general meeting today, particularly in the light of the upcoming flotation of Aer Lingus.

Elsewhere, dealers reported decent interest in the banks, where Allied Irish was the sector's biggest gainer, adding 69 cent, or 3.4 per cent, to €20.99. Almost 3.2 million shares changed hands.

Dealers said the stock was playing a bit of catch up on the back of the earlier Bank of Ireland trading update.

Bank of Ireland itself was up 20 cent, or 1.3 per cent, at €15.40, on lower volumes of only 2.8 million units. Anglo meanwhile ended the day 29 cent, or 2.3 per cent ahead, closing at €12.99. More than 4.6 million shares changed hands.

Irish Continental Group was also among the gainers, possibly also benefiting from the fall in the price of oil. The shares added 33 cent, or 3 per cent, to close at €11.

Drinks and snacks maker C&C recovered some of the losses it made earlier in the week, ending the day up 24 cent, or 2.4 per cent, at €10.45.