Dublin underpinned by steady trading in London

Dublin closed on a firm note, underpinned by steady trading in London at the end of the day and a higher opening on Wall Street. The ISEQ index rose just more than 1 per cent to 5,074.35 as gainers out numbered losers 28 to nine. AIB shrugged off unconfirmed reports that it faces an exceptional £250 million (€317 million) DIRT bill to close up 15 cents at €9.40.

The bank refused to comment on the report which suggested that the bill could possibly have been as high as £1 billion and that it was getting off lightly at £250 million. Bank of Ireland fell from €6.78 to €6.72 as traders switched into its rival.

Elan was propelled to €54.62, a rise of 3.1 per cent, although there was weakness in the stock on Wall Street. The drug company is still benefiting from positive reports about its ziconotide chronic pain treatment. Jury Doyle Hotel Group reported a 70 per cent rise in pre-tax profits and further expansion in the UK where it is to open a 240 bedroom hotel in Croydon. The company has proposed a final dividend of 11.11 cents per share and the shares closed up 2.8 per cent at €7.3.

CRH told the market that it had spent €339 million on acquisitions in the first six months of the year, but the news was not greeted with any enthusiasm. Shares in the building materials company fell 1.4 per cent to €18.74. Other news included a statement from Providence Resources that it expected progress by mid-September with its exploration effort in the Celtic Sea. The company predicted that up to 28 million barrels of oil could be recovered from the Helvick field. The market, which has seen many similar statements from exploration companies, was unimpressed. The shares were unchanged at 35 cents.

ITG announced its full year results including a fall in operating profits to €2.55 million from €3.22 million. The shares put on 10 cents to close at €10.50 on the back of a more than doubling of sales and a bullish statement from the company's chairman. Other stocks that gained yesterday included Eircom which was up four cents to €2.76 with no firm word yet from Telia concerning the disposal of its stake in the company.