Demand for the leading shares allowed the Irish market to make steady gains but the market still under-performed the major European markets where gains of over 1 per cent were notched up in London, Frankfurt, Paris and Milan. Dealers said, however, that the tone of the market is firm and shares still look good value at current prices.

The leading financials made the biggest gains, with AIB up 12p on 760p while Bank of Ireland was 5p higher on £11.15. Second-rank financials also made ground with Irish Life 6p higher on 463p and Irish Permanent up 2 1/4p on 847 1/4p.

Industrials were mixed with CRH drifting 3 3/4p lower while Smurfit was unchanged on 200p. DCC - traditionally the first of the December year-end companies to report results - was 10p higher on 515p while Kerry closed 8p higher on 788p with some investors expressing relief that there will be no cash call to fund the Dalgety acquisition.

Elsewhere Avonmore Waterford was unchanged but well-bid on 305p, Irish Continental added 10p to £10.35 while Unidare was 13p higher on 265p. Tullow was 3p higher on 175p - the group is currently in discussions with Texaco and Chevron on the terms under which the two American companies will take a 50 per cent stake in Tullow's Block 9 licence offshore Bangladesh.

Tullow fought off keen bidding from oil majors for this highly prospective licence and gave the Bangladeshi government a commitment to bring in other oil companies for a licence consortium. When the licence is formally awarded, Tullow will remain operator.

There were some movements among the market minnows, with BCO falling 9p to 211p and ITG up 16p to 242p. Today sees the arrival of Athlone Extrusions on the market, the first of an expected 10 new listings during 1998.