Market report: buoyant banks boost ISEQ

The ISEQ rallied strongly this morning led by resurgent financials and climbing eircom shares. At midday the market was up almost 1 per cent on 5,558.26, a gain of over 46 points.

AIB and Bank of Ireland were both ahead by midday up to euro 13.08 and 9.88 respectively. Anglo Irish Bank gained seven cents to euro 3.22 with Irish Life and Permanent the odd one out, easing down two cents to euro 12.23.

Eircom shrugged off recent weakness from the prospective eircell purchaser, Vodafone, to bounce up 14 cents on the ISEQ today to euro 2.54 at midsession.

Tech stocks enjoyed a relatively serene morning with Iona ahead 300 cents to euro 54.00 while ITG was up 60 cents on the back of positive half-year results to euro 7.40. Horizon was up five cents on euro 7.15 and Riverdeep, on euro 3.35, has gained 25 cents.

Losers today included Kerry Group down 33 cents to euro 13.60, Jurys down 10 cents on euro 9.05 despite strong half-year results. CRH shares were off 34 cents on euro 19.56.

British blue chips held firm but eased back from an earlier peak at midday as news that the Bank of England has left UK interest rates unchanged at 6.00 per cent disappointed the optimists in the market, dealers said.

At 12.15 (GMT), the FTSE 100 index was 33.5 points firmer at 6,093.4, slipping back from its peak of 6,105.0, but staying well above an opening low of 6,052.1.