Market surges after summit moves

Irish shares surged yesterday as Taoiseach Enda Kenny said a deal had been struck during summit talks with European leaders which could see a reduction in Ireland’s debt burden.

According to the statement, this will involve a move towards recapitalising banks directly through the ESM. It also pledged that it would examine the situation of the Irish financial sector with a view to further improving the sustainability of the well-performing adjustment programme. The Iseq index climbed 75.8 points to 3,148.6.

Financial stocks were mixed with AIB dipping 0.3c to 6.7c while Bank of Ireland advanced 1.3c to 10c. Permanent TSB Group declined by 0.1c to 2.7c with insurer FBD jumping 26c to €8.05.

In construction, sector heavyweight CRH rose 80c to €15.11. Kingspan was unchanged at €6.40 with Grafton increasing by 16.5c to €2.80.

Elsewhere, notable movers were Glanbia climbing 16.5c to €2.80 and C&C which strengthened by 18.2c to €3.39 on the day.