The Iseq made modest gains this afternoon, despite continued weakness in banking shares.
By 1.52pm, the market was up 16.36 points to 2,983.78.
Bank of Ireland shares were down 5.5 per cent just after 1.45pm this afternoon. The bank's shares slipped this morning after it was announced that the Government would take an additional 16 per cent stake in the financial institution instead of a dividend payment that was due to be paid today. This is in addition to a 25 per cent indirect stake taken out as part of the recapitisation of the banks.
AIB shares also dipped, falling 2.6 per cent to €1.09.
Speaking in Cavan today, Central Bank governor Patrick Honohan said it was likely that the banks would require further capital after loans were transferred to Nama.
Irish Life and Permanent rose 0.8 per cent to €2.83 by 1.45pm. The company is not taking part in the National Asset Management Agency.
Elsewhere on the market, shares in Aryzta were up 2.6 per cent to €28.50, while Glanbia gained 1.9 per cemt to €2.63.
Construction stocks fell this afternoon, with Kingspan down just under 0.5 per cent to €5.93. Further falls were seen in Grafton shares, which were down 1.9 per cent to €2.40, while McInerney Holdings fell 2.7 per cent to 17 cent.
European shares were down slightly by midday, snapping five consecutive days of gains, with GlaxoSmithKline hit by calls for a key drug to be withdrawn on safety grounds.
At 1147 GMT, the FTSEurofirst 300 index of leading European shares was down 0.2 per cent at 1,024.55 points. The index is down 2 per cent in 2010, partly on worries about Greece's deficit, but is up more than 58 per cent from the lifetime low it hit in March 2009.
GlaxoSmithKline fell 2.3 per cent after two US drug safety reviewers recommended that diabetes drug Avandia be pulled from the market.
Other fallers in the sector included Roche, Shire and Sanofi-Aventis, down between 0.8 and 1.7 per cent.
Greece's central banker said the country was prepared to take extra fiscal measures to make sure it meets its deficit-cutting targets, but he said financial markets were over-reacting to its financial woes.
Across Europe, the FTSE 100 index was up 0.2 per cent; Germany's DAX and France's CAC 40 lost 0.2 and 0.1 per cent, respectively.
Banking stocks were mostly higher, limiting the index's losses amid a largely positive reporting season for the sector. BNP Paribas rose 1.8 per cent, extending a rise of 11.5 per cent last week, when it reported results.
Other gainers included Royal Bank of Scotland and Lloyds, both up 2.5 per cent, ahead of results on Thursday and Friday respectively. National Bank of Greece, EFG Eurobank, Piraeus Bank and Alpha Bank rose between 3.1 and 4.2 per cent.
Additional reporting - Reuters
