Iseq breaks losing streak

The Iseq index of Irish shares closed up slightly today as European markets broke a four-day losing streak.

The index stood at 2,734.21 at the end of today's trading, up 27.56 points

Bank of Ireland outperformed the rest of the index, with the bank closing up 5 per cent on Friday's finish at 64 cent - a performance described as "surprising" by one Dublin-based dealer given the day was otherwise marked by the widening in Irish bond spreads over the German benchmark to a new record high.

Elsewhere in the financial sector, Irish Life & Permanent closed up almost 4 per cent at €1.61, although the day-on-day percentage gain here is flattered by a low auction close on Friday. Indeed, both Irish Life & Permanent and Independent News & Media, which closed up 3.6 per cent at 65 cent on decent volume, traded at similar prices to Friday's range.

Meanwhile, AIB, which offloaded its shareholding in Goodbody Holdings to Fexco for €24 million, fell 1.1 per cent to 61 cent.

Aer Lingus reached a milestone of sorts by closing at €1, up 4.1 per cent, which dealers attributed to more positive noises emerging from the long-haul market.

Ryanair, which holds its agm on Wednesday, also had a good day, finishing up 2.8 per cent at €3.84.

There was less favourable news in the US paper and packaging industry, where the latest round of containerboard price increases are failing to stick, according to a new report. The report, which was picked up by analysts at Deutsche Bank, was the catalyst for pressure on Smurfit Kappa's share price, despite the stock's lack of exposure to the US market. Its share price finished down 5.25 per cent at €7.40.

The eyes and ears of global markets are now trained on a statement due from the Federal Reserve tomorrow, with particular interest in whether the Fed will signal if further quantitative easing is likely in order to avoid a double-dip recession in the US.

At home, Ireland is conducting its regular monthly bond auction tomorrow.