Financials performance may signal recovery

Irish shares ended higher, helped by a firmer performance from the leading financial stocks, especially Irish Life & Permanent.

The index of financial shares gained nearly 1 per cent compared with a rise of just 0.4 per cent on the general index.

Overseas weakness, which saw the FTSE 100 fall to its second lowest close of the year so far and Wall Street get off to a weak start, failed to drag the Irish market out of positive territory.

Irish Life & Permanent gained 23 cents, or more than 3 per cent, to close at €7.60 while AIB posted a more modest rise of four cents to €7.97 and Bank of Ireland was up seven cents at €6.25.

CRH was another good performer ahead of its results next week, gaining 33 1/2 cents or nearly 2 per cent, to €17.63 1/4. "People are generally expecting a good set of results," one trader said.

However, other leading industrial stocks slipped back with Smurfit losing five cents to €2.56, Fyffes down eight cents at €3.87 and Independent Newspapers shedding five cents to €10.85.

Eircom avoided the general slippage, however, and finished 20 cents higher at €4.50. Dealers said the stock was well underpinned at the €4.30 level.

On the Nasdaq, Baltimore proved a strong performer, gaining some 10 per cent by the close of trade in Dublin ahead of preliminary results later today.

Trinity Biotech also had a good day, adding 21.5 per cent. But Iona and Smartforce did not fare as well, down 2.9 per cent and 0.7 per cent respectively by the Dublin close.