The Iseq spent much of the day in catch-up mode following strong buying of financial stocks late Thursday in the United States after the Dublin market had closed.
The Dublin index finished Friday up 86.9 points, or 1.4 per cent, at 6,178.8 points, following modest gains in the United Kingdom and in early trading yesterday across the Atlantic.
Sentiment towards banks picked up in late trading in the United States after Merrill Lynch left its dividend unchanged, signalling strains on banks may have eased.
Anglo Irish Bank closed up 30 cent, or 3.7 per cent, at € 8.10.
US stocks fell as disappointing results from Microsoft weighed on the technology sector and a sharp rise in the price of oil hit industrial shares. The Dow Jones industrial average fell 52.76 points, or 0.41 per cent, to 12,796.19.
Britain's top share index ended up 0.7 per cent as optimism that banks had seen the worst of credit-related write downs lifted the sector and oil stocks tracked higher crude prices. The FTSE 100 closed at 6,091.4 points, up 40.7 or 0.67 percent, 34.9 points higher on the week.