Irish shares track higher on rate cut hopes

Iseq: 3,112 (+87) at 12.57pm:Irish shares were tracking upwards this afternoon as easing oil prices and the expectation of rate cuts in Europe later this week lured investors.

At 12.57pm the Iseq Index of Irish shares was up 2.8 per cent at 3,112, a gain of 87 points. Brokers stressed that volumes were very light but said most of the major sectors were "ticking forward".

Ryanair was enjoying strong interest on the back of its results yesterday which showed a 47 per cent fall in net profits for the first half of its financial year, largely due to rising fuel prices earlier this year.

The stock was the subject of a number of upgrades today and this pushed the airline up more than 5 per cent to €2.97. Fellow airline Aer Lingus was up 1.8 per cent at €1.11.

Banking stocks were higher today with Bank of Ireland leading the way with a gain of 11.2 per cent to reach €2.29 at 12.57pm.

AIB shares were up 6.4 per cent at €4.47 while Irish Life and Permanent added 6.2 per cent to €2.50. Anglo Irish Bank shares were up 4.6 per cent at €2.22.

Traders said AIB's interim management statement tomorrow morning would be closely watched. "The key point is where are we in the earnings cycle? Are we at the bottom or do we have more to go," said one.

Elsewhere Petroneft Resources has seen its shares spike over 67 per cent after it provided an update of its drilling operations in Siberia.

Among the fallers Elan was off 3.5 per cent at €5.90 while Greencore was marginally lower, down 1.6 per cent at €1.22.