FINANCIAL shares, led by Bank of Ireland, raced ahead in a late rally pushing the ISEQ Index through the 2,600 barrier before it slipped slightly to end at a record closing level just short of 2,600.

Strong international demand and a shortage of offers drove up the price of Bank of Ireland shares which closed 10p ahead at 490p. The closing price was yet another record for the shares which started trading in New York this week. The bank now has a market value of £2.377 billion.

AIB gained 2p to close at 369p in reasonable volume, giving the bank a market capitalisation of £2.5 billion. Irish Permanent continued to power ahead, closing 4p stronger at 440p, another record.

There was bid interest in Irish Life as the market suggested Thursday's results - profits of £48 million were ahead of market expectations. The shares gained 1 1/4p to close at 242 1/4p. Among the insurers, New Ireland, after a fall in half year profits, rose 50p to 950p and Hibernian put on 5p to close at 279p.

Concentration on the financial stocks meant that industrial and food shares traded quietly. But CRH put on 3p to close at 610p and Kerry closed 10p down at 610p.

Boxmore, which will join the ISEQ Index on January 1st 1997, dealt in a put through at 297p up 42p on its previous price. Against the trend, Fyffes dealt 1p lower at 100p, Grafton was 5p weaker at 660p, Waterford Wedgwood lost 1p to 79 5/8p and Woodchester was 3p down at 192p.