Value of Irish shares up €1.3bn

AROUND €1.3 billion was added to the value of Irish shares yesterday, as blue-chip stocks had a strong start to the week despite lower trading volumes as a result of the bank holiday.

The benchmark ISEQ index added 1.7% on the back of strong gains by high-profile shares such as Eircom, AIB and Grafton. But trading volumes were thinner than usual, at around half of Friday’s levels.

Eircom surged 5.3% thanks to renewed demand for telecoms stocks in the wake of Spanish phone company Telefonica’s €26 billion offer for mobile operator O2. Analysts predicted greater demand for telecoms stocks thanks to a fresh wave of consolidation in the sector.