Stocks stage strong recovery

Irish stocks rebounded yesterday in line with European and world bourses after constructive budget talks took place in the US, with leaders of the Senate and House indicating they would be flexible in their efforts to avert a ‘fiscal cliff’ of tax increases talks and spending cuts.

The Iseq Index closed 41.7 points ahead at 3,219.77.

In the financial sector the three listed Irish banks were higher overall with Bank of Ireland and Permanent TSB Group rising 0.1c to 9.6c and 2.1c. AIB was unchanged at 5.2c. Meanwhile, insurer FBD Holdings advanced 45c to €9.65 after management raised its operating earnings per share guided range by 10c, following a better-than-anticipated claims performance in the second half of the year.

In construction, sector heavyweight CRH jumped 33c to €13.93. Kingspan gained 10c to €7.60, while Grafton was higher by 15c to €3.55.