Market gains on brighter prospects

THE ISEQ jumped 48.23 points to close at 2,606.5 yesterday.

European bank shares continued to rally as investors took confidence that solutions for Europe’s debt crisis are beginning to take shape. The gains came as European Commission President Jose Manuel Barroso told the European parliament that the region must urgently strengthen the banks. In addition, eurozone industrial production was much stronger than expected in August, indicating the economic slowdown in the third quarter might be smaller than feared.

In the financial sector, AIB improved 1.3c to 5.9c. Bank of Ireland added 0.3c to 10c. Irish Life & Permanent moved up 0.6c to 3.4c, while insurance group FBD Holdings climbed 22.4c to €6.70.