Market gains on back of concerns

THE ISEQ index increased 53.89 points to 2,867.17. Concerns are mounting that Ireland may need more than the €35bn already set aside under an EU/IMF bailout to prop up its banks.

The Government is also worried that pressure from the ECB could force a quick sale of bad Irish loans and increase its problems. The European Central Bank, which is supporting Irish banks by lending them money they would normally borrow from peers, wants to gradually withdraw this, but Mr Kenny will seek to rally support among EU leaders for more leeway.

In the financial sector, AIB was unchanged at 18.5c. Bank of Ireland fell 0.5c to 27.4c. Irish Life & Permanent gained 1.9c to 68.9c, while insurance company FBD Holdings improved 4.9c to €7.40.