Irish shares moved ahead yesterday against the trend throughout Europe and the ISEQ Index closed higher. Trading volumes remained moderate but the market was helped by strong results from a number of second-line stocks.

Hints from Bundesbank president, Dr Hans Tietmeyer - that there would be nothing in the way of a revaluation of the pound - pushed the bond market forward. Irish bonds outperformed international bonds all along the yield curve with gains of two to four basis points at all levels.

Dealers reported an active day on the bond markets with strong foreign interest in Irish bonds and good volume trading.

Stronger-than-expected results from Kingspan, with pre-tax profits of just over £13 million for the six months to end-June and a favourable economic environment, pushed the share to a new high. It closed at 1000p, up 55p on the day. Dealers said the results would lead to upward revisions of full-year profits forecasts.

Other second-liners to reach new highs yesterday included Irish Continental Group and Grafton Group. Half-year results from Irish Continental Group were slightly ahead of expectations and, with strong growth expected for the rest of the year, the shares gained 42p to closed at 825p.

Against the background of a buoyant economy and a strong retail trade, a 9 per cent rise in pre-tax profits at Arnotts failed to impress. The shares closed 2p weaker at 438p.

Good results from the Grafton Group on Tuesday helped the shares again yesterday. They gained 40p to close at 1140p, a new high.

Among the front-liners, Bank of Ireland fell back 3p to 772p, while AIB closed unchanged at 574p. CRH was in demand ahead of results next week and continuing buoyancy in the Irish construction sector. The shares rose 12p to close at 735p. Ahead of results next week, Jefferson Smurfit Group put on 2p to close at 224p.