Gains for ISEQ after bank guarantee

The ISEQ index of Irish shares gained 8% this evening following news that the Government has called for EU-wide protection for banks with a €400bn state guarantee of all deposits in the country’s indigenous financial firms.

All the financial heavyweights reacted favourably to the latest twist in the global financial crisis, AIB jumped 90c to €5.90 with Anglo Irish Bank up 67% (gaining €1.54 to €3.84). Bank of Ireland soared 68c to €3.95 and Irish Life and Permanent climbed 36%, up €1.28 to €4.85 by market close.