The ISEQ eased back by 0.3 per cent yesterday, out of step with other European bourses which were up on the strength of figures from the US Labor Department giving a favourable verdict on inflation.

Banks, however, did well, taking a lead from British banks, with AIB

gaining 13 cents to €13.38 (£10.54) in good volumes. The board announced that an executive director and a non-executive director would be joining the board of Keppel Tatlee Bank in Singapore.

Bank of Ireland slipped seven cents on opening but ended the day in positive territory closing up eight cents at €17.65 (£13.90).

Although not forming part of the index until July 21st, attention was focussed on Telecom Eireann on the first day of private client dealing as share certificates arrived in the post.

In the event, dealers noted that it was the quietest day of trading so far, although stockbrokers saw some selling in the afternoon as shareholders opted for a quick profit.

The stock went down four cents to €4.66 (£3.67) but is still 19 per cent ahead of its initial public offering price.

Analysts predicted that many of the new private investors would take at least a day and probably the weekend to review their options.

Apart from Telecom, it was a featureless day for stocks. CRH, which announced that it had spent €197.7 million (£155.7 million) on development initiatives around the world in the first half of 1999, was down 22 cents to €19.10 (£15.04) in profit taking. Kingspan was unchanged at €2.65 (£2.09).

Smurfit dealt up 10 cents from £1.70 sterling to €2.70 (£2.13) on foot of good news on the US linerboard market.

On the Nasdaq, Iona was back 6.3 per cent to $16.75 (€16.42) at the close of Irish trading, following Wednesday's quarterly results which showed a 55 per cent decline in profits.