The Irish stock market gained more than one percentage point to reach a record high yesterday as share prices across Europe were boosted by the European Central Bank (ECB) decision to cut interest rates by a quarter point. Banking and technology shares led a European stock market rally. The Bank of England also weighed in with a rate cut, further helping companies with British exposure.

Dealers said a good set of results from Bank of Ireland, which were in line with market expectations, also cheered the market. The bank posted an 18 per cent increase in full-year pre-tax profits. However, the shares fell amid follow-through selling after a dramatic rally ahead of the numbers. They dipped as low as #10.40 before eventually closing 12 cents lower at #10.88. AIB, however, gained 30 cents to #13.20, while Anglo Irish Bank gained nine cents to #4.34.

Among industrial stocks, CRH was up nine cents at #19.98, while Eircom also gained nine cents to #2.65 ahead of today's extraordinary general meeting to approve the sale of Eircell.

Pharmaceutical group Elan, which said studies conducted on its injectable solution Myobloco showed the drug to be stable for 30 months when refrigerated and for nine months at room temperature, gained more than 3 per cent. It closed #1.85 higher at #60.35.

In the technology sector, Riverdeep lost 15 cents to #4.85 despite announcing a sharp rise in third-quarter sales, while Iona lost 50 cents to close at #50.