Banks help Iseq shrug off Greek woes

THE Iseq index of Irish shares closed up yesterday 37 points higher at 6,187.23 despite Europe-wide fears that Greece may be slipping into a potentially messy debt default.

Elsewhere, a rise in mining shares enabled European stock markets to recover ground yesterday, although the Athens bourse touched three-year lows on mounting worries over Greece’s debt crisis.

In Athens, the benchmark ATG equity index touched its lowest level since late 2012, as worries intensified over a deadlock on talks between Greece and its creditors. The ATG edged back to close 0.4pc higher but remains down 17pc in 2015.

Greece must find a way out of the impasse by the end of June, when it is due a €1.6bn repayment to the International Monetary Fund, potentially leaving it bankrupt and on the verge of leaving the Eurozone.

Some traders said the ECB’s support – which has also included help for Greek banks – was enough to ensure that Europe’s stock markets still had the momentum to move forward despite the crisis.

“Markets are continuing to be propped up by the ECB,” Hampstead Capital hedge fund manager Lex Van Dam said.

However, the broader, pan-European FTSEurofirst 300 index closed up 0.2pc while the Eurozone’s blue- chip Euro STOXX 50 index advanced 0.6pc, with both recovering from losses in the previous session.

Germany’s DAX rose 1.1pc, with the DAX some 10pc below record highs set in April.

In Dublin, financial stocks led the gainers, with Bank of Ireland up 2.88pc to 36 cents a share and FBD rising 2.566pc to 9.23.