DUBLIN REPORT: Iseq:2,734.21 (+27.56) Settlement date:September 23rd

THE ISEQ index of Irish shares closed up slightly yesterday as European markets broke a four-day losing streak.

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

Elsewhere in the financial sector, Irish Life & Permanent closed up almost 4 per cent at €1.61.

Both Irish Life & Permanent and Independent News & Media, which closed up 3.6 per cent at 65 cents 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, a move dealers attributed to more positive noises emerging from the long-haul market.

Ryanair, which holds its annual general meeting tomorrow, 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 is failing to stick according to a new report. The report was the catalyst for pressure on the share price of Smurfit Kappa. Its share price finished down 5.25 per cent at €7.40.

The eyes and ears of global markets are trained on a statement due from the Federal Reserve today, with particular interest in whether the Fed signals that 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 today.