ISEQ surges up after Govt's pledge to guarantee deposits

The ISEQ index of Irish shares rallied immediately after opening today, on the back of the Government's decision to safeguard all deposits with Ireland’s main banks for the next two years.

The ISEQ yesterday suffered its biggest one-day fall since 1987 with many bank shares plummeting.

But stocks today opened 3.4% higher today in the first minutes of trading as investors appeared reassured by the Government’s multi-billion euro guarantee.

On September 20, Finance Minister Brian Lenihan moved to increase the guarantee limit from €20,000 to €100,000 due to continuing uncertainty in the international banking sector.

The guarantee announced today will cover all deposits with Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society.