The Dublin market has begun the week in positive territory with investors responding well to the decisive Yes vote to the Lisbon Treaty at the weekend.
At 1.30pm the Iseq index of leading shares was up 24.02 points to 3254.84.
Banks were firmer this morning with AIB up 9 cent to €3.08, Bank of Ireland gaining 4 cent at €3.12 and Irish Life & Permanent increasing 10 cent to €5.40.
In the construction sector, heavyweight CRH was trading up 28 cent at €18.43, while Kingspan rose 4 cent to €6.29 and Grafton lost 7 cent to €3.55.
C&C, which is to release its half-year results on Thursday, was up 4 cent at €2.90. Other movers included FBD, which rose 16 cent to €7.59, and Elan, up 3 cent to €4.61.
The Irish bond spread was flat at 165 basic points and remained the highest-yielding in the euro zone
Investor sentiment was boosted by a statement from ratings agency Moody's which said that the Yes vote 'removed a lingering uncertainty that had clouded Irish creditworthiness.
However, it added that while the Yes vote was "rating supportive," the negative outlook remains with Moody's expecting a further deterioration of Ireland's debt affordability.
Ireland's long-term Government bond rating with Moody’s is currently Aa1.
"Although the Yes vote is supportive for Ireland’s creditworthiness, the outlook on Ireland's Aa1 long-term government bond ratings remains negative, reflecting the risk of a further, gradual deterioration in its debt affordability," it said.
"Ireland’s ability to reverse negative debt dynamics in a low growth environment will be tested.”
“Overall, debt dynamics will remain unfavourable for several years and the downside risk outweighs any upside potential in the near-to-medium term. Although Ireland is not alone in seeing a sharp deterioration in credit metrics, it is constrained by the small scale of its economy and the erosion of its dynamic core relative to larger highly rated countries facing similar structural challenges," it added.
In a note to investors issued this morning, Moody's added that Ireland's membership of the Economic and Monetary Union (EMU) had sheltered the country from currency volatility that would have likely happened otherwise.
It added that an additional benefit had been that membership had allowed Irish banks to access the European Central Bank's (ECB) liquidity facilities.
