Dublin report: Irish stocks closed higher yesterday, reversing the sharp losses experienced in Tuesday's trading, when more than €2.6 billion was wiped off the value of the Irish market.

The Iseq finished 81.96 points, or 1 per cent higher, at 8,277.55, as the exchange followed a rebound in European markets. The Dublin market was also buoyed by some good news, particularly interim results from Irish Life & Permanent (IL&P), which beat market expectations.

IL&P reported a 33 per cent rise in group operating profit to €321 million and issued a bullish outlook statement. This put financials, many of which have been badly hit in recent times, on a better footing yesterday and most reaped the benefit.

In the sector, IL&P was the star performer, advancing 69 cent or nearly 4 per cent to close the day at €18.25.

Other gainers were AIB which rose 2 cent to €18.61 and Bank of Ireland which tacked on 23 cent to end the day at €13.15.

However, FBD, which earlier in the day reported a fall in pretax profits in the first half of the year to €49.7 million from €157.4 million in the same period last year, saw its shares tumble by nearly 5 per cent. It eventually closed the day €1.35 weaker at €26.40.

Elsewhere, there was better news for Glanbia, which reported that its pretax profits rose 28 per cent to €38.6 million, helping to drive its share price up 14 cent or 3.6 per cent to €4.03.

Construction stocks also enjoyed a bit of a reprieve. Grafton was 32 cent stronger at €9.69, while CRH, which reported good numbers on Tuesday, also put in a good day, gaining 79 cent to end the day at €31.64.

Kingspan tacked on 15 cent to close at €17.30, while McInerney finished up 8 cent at €2.08.