Market gains as interest rates cut

THE ISEQ index advanced 72.15 points to close at 2,682.14 yesterday. Markets reacted well to a surprise decision by ECB president Mario Draghi to cut interest rates by a quarter of a point to 1.25%, in a move to boost the European economy.

In a statement the ECB said that while inflation has remained elevated and is likely to stay above 2% for some months, rates are expected to decline further in 2012 to below 2%.

In the financial sector, Bank of Ireland slipped 0.1c to 9.2.c. AIB dropped 0.2c to 9.5c. Irish Life & Permanent gained 0.2c to 3.5c, while insurance group FBD Holdings was unchanged at €6.20.