Market surges on Budget hopes

The ISEQ jumped 47.50 points to 2,800 ahead of the expected passing of the Budget and amid hopes that the economy will stabilise.

The euro also rose yesterday on optimism that the Dáil will pass the Budget, though the single currency was still troubled by structural weaknesses in the euro zone.

European shares hit a 26-month high yesterday, with commodity stocks gaining on strong crude and metals prices and as a deal to extend US tax cuts helped lift confidence in the economy.

In the financial sector, the main banks enjoyed a good day.

AIB gained 7c to 44.8c. Bank of Ireland improved a further 5.3c to 41.7c. Irish Life & Permanent tacked on 14.3c to 1.162, while insurance group FBD Holdings posted a modest gain of 2.4c to 5.80.

In the construction sector, CRH increased 46c to 15.03. Grafton Group improved 11.2c to 2.97.

Kingspan moved up 1.5c to 6.43, while Abbey Group closed up 15c at 4.75.