Even a weak afternoon performance on Wall Street failed to dent enthusiasm for the leading financial stocks and the ISEQ index of Irish shares closed half a percentage point higher.
The Dow, reopening after Monday's market holiday, got off to a firm start as it took heart from positive fourth-quarter results in the financial sector. But early gains were wiped out amid investor concerns over economic conditions in Brazil, where interest rates were raised on Monday to 41 per cent from 36 per cent. The rate hike by Brazil's central bank was aimed at damping inflationary pressures stemming from last week's decision to let the value of Brazil's currency, the real, float freely on foreign exchange markets.
Dealers said international markets remained volatile but the Dow's downturn came too late to have any immediate impact in Dublin although it succeeded in dragging other European markets downward.
AIB, one of the few Irish stocks to be included in the indices of Europe's top shares, gained 27 cents to #17.30 (£13.62) as take-over talk circulated in the market while Bank of Ireland was up 12 cents at #18.72 (£14.74). Other financial stocks also gained ground with Irish Life closing 10 cents firmer at #9.00 (£7.09) and Irish Permanent adding 30 cents to #14.40 (£11.34). First Active gained 15 cents to #4.60 (£3.62) and Anglo Irish Bank was up six cents at #2.63 (£2.07).
"The focus has really been on the leaders and on the financial stocks in particular," one trader said.
Avonmore Waterford's name change to Glanbia was greeted by a 20 cent fall in the share price to #2.00 (£1.58), a 9 per cent fall on top of Monday's 4.35 per cent drop.
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