The imminent Telecom Eireann flotation has been given another boost ahead of Wednesday's pricing of the initial public offering of over one billion shares, with stock markets in Dublin and London continuing their recent recovery.

Strong demand for financial shares - the ones worst hit during the June slump - drove the ISEQ up another 1.5 per cent, while the ISEQ financial index was up over 4 per cent as investors snapped up AIB, Bank of Ireland and Irish Life.

Strong demand allowed AIB climb 55 cents to €14.10 (£17.90) while Bank of Ireland - which has had a dismal period as a result of the Alliance & Leicester debacle - climbed 85 cents to €18.00 (£14.18) while Irish Life hit a high of €11.40 (£8.98) before closing 43 cents higher on the day on €11.20 (£8.82).

Hibernian was 30 cents higher on €7.80 (£6.14) although First Active lost 3 cents to €3.27 (£2.58).

CRH's latest acquisition in the US might be relatively modest by its recent standards, but still showed that the group has lost none of its acquisitiveness. The shares closed 40 cents higher on €18.40 (£14.49). Elsewhere, Crean continued its modest recovery and was 4 cents higher on €1.22 (£0.96), while Fyffes was 5 cents higher on €2.15 (£1.69) after buying in another 200,000 shares at 5 cents lower.