Market report:THE ISEQ index closed up 1.24 per cent yesterday, but the positive end did not reflect the volatility of the day's trading, with many shares changing hands at prices across an 8 per cent spread on the day.

While profit-taking before the close of the half-year of trading contributed to the volatility, traders said there did not seem to be a clear reason for the turbulence.

One weary trader said the market was taking its cues from international news.

Fortunes were mixed in the banking sector, which makes up about half of the Iseq's value.

More than four million AIB shares were traded. The bank ended the day up 5.25 per cent at €10.00, but earlier in the session it had been down about 2 per cent.

The banking stock that suffered most was Irish Life Permanent, which closed at €7.37, down 7.3 per cent.

Decent volumes were traded in building supplies group Kingspan, as it gained 6.37 per cent to €6.35.

This was an impressive rally, as it had been trading at €5.98 mid-morning, just one cent up from its opening price.

Kingspan's fortunes were in contrast to another construction stock, McInerney Holdings, which was down 6.56 per cent at €0.57.

Not surprisingly, Ryanair suffered from oil reaching a record price of $142 at one stage during the session. It closed down 3.39 per cent at €2.70.

Aer Lingus was also in negative territory, down 3.92 per cent at €1.47.

Both Sir Anthony O'Reilly and his son, Gavin O'Reilly, were in the market for shares in Independent News Media, but this did nothing to hold up the stock's price.

The media group ended the day at €1.52, down 5.47 per cent.

Settlement date: July 2nd