Eircom shares have continued their recovery and gained another 13 cents yesterday to close on €4.14 (£3.26), more than 6 per cent ahead of last July's €3.90 flotation price.

Demand for Eircom is outstripping supply at present - a complete turnaround from the technical position of a week ago when the shares were driven down to a low of €3.65 as domestic institutional investors stayed out of the market.