The Irish stock market ended moderately higher, led by gains in the two main banking shares and cheered by a stable performance in international markets despite the recent turbulence in Asia.

The FTSE 100 ended 27.7 points higher while the Dow got off to a steady start as US and European markets took heart from an overnight rebound in Asian stock markets. The Nikkei index gained 1.2 per cent yesterday as Japan pledged it would ensure the financial stability of the economy.

Dealers said volumes in Dublin had improved as some of the uneasiness felt in the wake of the Yamaichi collapse had gone out of the market. "It hasn't had that much of an effect on the Dow and the FTSE an, as a result, Dublin hasn't really been affected. Markets generally seem to be quite sanguine about it," one trader said.

"An odd person is taking money out on the retail side but institutional investors don't seem to be taking the same view. Generally they seem to have a relaxed attitude to it."

Traders said the Irish market was also perceived as a safe haven from the recent turmoil in global equity markets, although caution was likely to reign today with the US market shut for the Thanksgiving holiday.

The ISEQ index of Irish shares gained 17.97 or 0.48 per cent to 3,743.29 with the two main banking stocks leading the way.

AIB gained 5p to 585p, while Bank of Ireland also added 5p to 900p.

"In percentage terms, it wasn't a huge move but it was the main feature of the day," one equity dealer said.

The leading industrial stocks also made modest gains, with Smurfit firming 4p to 198p, while CRH edged up 2p to 777p. Dealers said the building materials group was probably benefiting from some switching out of Redland which accepted a revised takeover offer from French rival Lafarge on Tuesday night.

Printing group Adare was unchanged at 720p after reporting a 39 per cent increase in half-year pre-tax profits to £7.24 million.

Dealers said the share tended to be fairly illiquid but the results, which showed earnings growth of over 17 per cent, were good. They were in line with expectations and brokers Goodbody do not expect to upgrade.

Avonmore Waterford, which said on Tuesday that it was axing 750 jobs in Ireland and a further 550 in Britain, shed a further 5p to 250p. Dealers said the cash cost of the rationalisation was greater than expected.