The Dublin market staged what brokers called a “cautious recovery” today as it rose more than 2 per cent and recouped half of yesterday’s losses.
At 12.40pm the Iseq index of Irish shares was 2.3 per cent higher at 4,766.
All the main banking stocks were in positive territory although analysts said there was less conviction among buyers than there had in evidence from sellers of financial stocks yesterday.
"There are still issues out there that are of concern to institutional investors, issues of capital or credit and this is leading to a lack of conviction", said one broker. He added that European banks had enjoyed a strong morning's trading and said this was providing much of the lift for the sector.
Bank of Ireland shares reached the midday stage up 6.8 per cent at €4.82, recouping some of the 11 per cent fall from yesterday.
Anglo Irish Bank shares were ahead 4 per cent at €5.30, although still shy of its 7 per cent fall yesterday, while AIB stock added 3.7 per cent to €8.40, again well short of regaining its 10 per cent fall from the previous day.
Irish Life and Permanent, which traded down 20 per cent at one stage yesterday before closing down 13 per cent was this afternoon 2.5 per cent ahead at €4.77.
Outside the financials there was little significant movement. Elan moved ahead over 4 per cent to €22.65 while building materials giant CRH eased up less than 1 per cent to €16.01.