Iseq: 2,965.29 (+41.47):Banking stocks staged a late rally in trading today, with both Bank of Ireland and AIB closing up and pushing the Iseq to outperform the European markets.
Bank of Ireland finished at €1.91, up 9.14 per cent, AIB closed at €1.76, up 4.14 per cent while IFG finished strongly at €1.35, up 12.5 per cent to complete a triumvirate of gains for the financials.
Strong gains for Bank of Ireland were on the back of news that the bank is about to raise additional capital through internal measures and is poised to claw back some of its loses, traders said.
One Dublin trader however, cautioned against reading too much in to a rise of banks shares in conjunction with a rise in the index, saying volatility was still 'a major concern' for Irish banking stocks.
Drinks conglomerate C&C also traded well after brewing company Molson Coors posted strong results, finishing at €2.70, up 4.85 per cent.
Elsewhere, budget airline Ryanair closed at €2.85, down 3.72 per cent, Dragon Oil continued its slide to finish at €4.90, down 2.39 per cent while Aer Lingus also completed a weak day for the airline sector following news of price hikes from the Association of European Airlines, closing at €0.53, down 1.85 per cent.
Meanwhile Paddy Power traded well ahead of expected positive news from a market update next week, closing at €22.00, up 4.07 per cent. Index heavyweight CRH also generated good business after construction company Wavin reported improving sales trends and a slow-down of contraction in the industry. CRH finished at €18.04, up 2.44 per cent.
Traders also drew positives from trading on Irish Continental Group, although the stock closed at €13.10, down 0.38 per cent. One market trader said the company had returned to the 'old school' ways of a proper equity company with a healthy balance sheet, and was becoming more attractive.
On International markets the FTSE closed up 17.75 points at 5,125.64, fuelled by optimism in energy stocks and the Bank of England's decision to hold interest rates static.
The Dow recorded sharp gains in early trading, buoyed by news of a rise in business activity and a drop in the number of employed in the US the index recorded gains of 72.76 points to 9,974.90.
On the continent positive sentiment also spread with word that the European Central Bank was keeping interest rates on hold and positive data from the US leading the Paris Cac 40 to close up 38.4 points at 3,708.73, while the Frankfurt Dax index closed up 36.7 points, at 5,480.92.