A rebound by financial shares after recent losses was the main reason for the recovery in the ISEQ, while the main highlight on overseas markets was the enthusiastic reaction to Iona's $270 million (€298.6 million) acquisition in the United States.

Once again the heaviest trading among financial shares was in Anglo Irish, where more than 4.7 million shares, including a single line of 1.5 million shares, traded. The price, however, only gained a cent to €3.66. There was also sizeable trading in the two big banks, with AIB up 26 cents on €12.10, while Bank of Ireland gained 28 cents to €10.00.

There was an enthusiastic reaction to the results from Green Property. The share hit a high of €8.13 before closing 20 cents higher on €7.85. Analysts are hiking up their current-year forecasts for Green. NCB has given the share a short-term target of €8.75. A recovery by Vodafone and the expected deal with the unions on the terms under which Eircell staff will transfer helped Eircom gain seven cents to €2.60.

Marlborough was unchanged on €1.35 as Quinn Direct disclosed that it has been a recent buyer, taking its stake to almost 6.5 per cent. Quinn's last disclosed stake was 4.8 per cent and this suggests that it has bought in the order of 530,000 shares recently.

Iona's $270 million acquisition of Californian software group Netfish was greeted ecstatically by the market and by midday on Nasdaq Iona was trading almost $7 higher, above $56. That gives Netfish shareholders, who were paid through the issue of 5.5 million Iona shares, an instant $38 million profit on the deal.