Markets round-up: Banks lifted by ECB rate hopes

Hopes of an ECB interest rate cut on Thursday helped markets to a positive start to the week with the leading Irish banks posting…

Hopes of an ECB interest rate cut on Thursday helped markets to a positive start to the week with the leading Irish banks posting strong gains. The ISEQ closed 88 points higher at 5,585.

Bank of Ireland gained 25 cents to euro 9.65 and AIB put on 19 cents to euro 11.64. Irish Life & Permanent gained 10 cents to euro 12.50 in s strong sector performance.

Eircom's restructuring unveiled today dominated the business news headlines and was well received by investors. The hard hit former state telco said it was closing its loss-making multi media business to refocus on its core fixed line business. Shares in Eircom gained 10 cents to euro 2.45.

Hotel group Jurys warned that full year profits would be hit by foot-and-mouth, but not by as much as some analysts had feared. However Jurys shares gained 10 cents to euro 8.60 after the confession as markets consider the outbreak has peaked.

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Irish technology stocks made significant gains today, buoyed by a strong opening on Wall Street. Riverdeep advanced by 15 cents to euro 3.85 while Iona was 15 per cent higher on the Nasdaq having surged as high 25 per cent in early trade.

In London the FTSE 100 reversed early morning losses to close firmly in positive territory today, buoyed by a strong open for Wall Street and gains for energy, oil and telecoms stocks.

The most notable gainers came from telecoms, oils and utilities sectors while technology shares staged another weak performance.

A 1.1 per cent gain for Vodafone helped push the FTSE higher. British Telecom gained 4.5 per cent on rumours that the company would dispose of its property portfolio for about £2bn. This led other telecoms higher and Colt Telecom gained 2.4 per cent while Cable & Wireless put on 2 per cent.