Iseq: 3,108 (+165) 12.43pm:  Weary traders were cautiously optimistic this afternoon as the latest measure to combat a global financial meltdown - the investing of $125 billion in nine of the biggest US banks by the government - drove worldwide stocks higher today.

At 12.43pm the Iseq index of Irish shares was up 5.6 per cent at 3,108 a gain of 165 points.

On "average volumes" a number of Irish stocks were performing strongly with Irish Life and Permanent the best performing of the financials, rising almost 20 per cent to €4.35.

Anglo Irish Bank stocks rose by 8.7 per cent to €2.49 while AIB was up 7.2 per cent at €3.69. Bank of Ireland was ahead a more modest 4.4 per cent at €2.24 by the midway point.

Brokers noted comments from Pat Neary, chief executive of the Irish Financial Services Regulatory Authority that Irish banks were solvent, but said given recent developments in the UK and the US the concern that some of the Irish banks may require additional cash remains.

"Normally a Tier 1 capital ratio of 6 per cent would be absolutely fine, but these are not normal times," said one Dublin trader.

Speaking at an Oireachtas Committee today Mr Neary said additional supervisors would be placed within the country's banks to monitor operations and tighten reporting requirements on capital, asset quality and individual large loans.

Outside the financials CRH continues to perform well with brokers noting strong buying interest although they were somewhat cautious about the knock-on impact of the latest US plan.

"If the US government is investing all these extra billions into its banks there is of course going to less cash for infrastructure investment". At lunchtime CRH was up 6.7 per cent at €17.72.

Another stock enjoying strong interest was Ryanair, benefiting from a sliding oil price. Its shares were ahead over 6 per cent at €2.26.