Small gain for Iseq on quiet day

While better than expected news from the US lifted its European peers, underperforming banks and generally quiet trade meant that the Dublin market could not quite keep up today.

The Iseq index of Irish shares closed 0.5 per cent up at 2,698.83 after what traders generally described as a quiet day.

In Europe, the Dow Jones Stoxx 600, which tracks leading shares in 18 western European markets, added 1.1 per cent to close at 263.97, leaving the index ahead for the week.

Elsewhere, London's benchmark FTSE 100 added 0.9 per cent after a troubled start to close at 5.598.48. A rebound in demand for US capital goods helped ease market fears that the global recovery is slowing.

In Dublin, the recovery still looked a long way off. AIB was under pressure from the off Dealers pointed out that the markets are waiting for an announcement that it intends to sell its 22.5 per cent holding in US bank, M&T, and to see how lenders will receive any proposals it has to refinance its existing debts.

It shed almost 5 per cent by the finish to close at 53.6 cent as investors sold 1.4 million shares in Dublin. Traders said those volumes were "light enough".

Bank of Ireland also suffered, dropping 1.67 per cent to close at 59 cent. Around 17 million of its shares were traded yesterday.

Dublin's biggest stock, CRH, underperformed the market and its peers, turning in a lacklustre performance to close 0.7 per cent down at €12.59. It was more than 2 per cent off earlier in the day but recovered some ground during the afternoon.

News that exploration group, Providence, has come across a natural gas prospect off the south coast boosted its shares by 9.44 per cent to €1.97.

Low-cost airline, Ryanair, gained a bit of altitude, adding 1.09 per cent to close at €3.811, with investors buying close to 4.5 of its shares in Dublin.

Paper and packaging specialist, Smurfit, also enjoyed a good day. It gained 1.84 per cent to close at €7.20.

Listed bookmaker Paddy Power,which has been weak for the last few days, lost 3.6 per cent to end the day at €24.94. However, dealers suggested that it would recover this ground next week.