| 12.5°C Dublin

Banks, landlords and building sector shares soar

Close

Stock photo

Stock photo

Stock photo

Bank of Ireland shares shot up as much as 11pc on Tuesday, leading an Irish stock market surge turbo charged by increasing certainty of a centre right led government and the prospect of a construction heavy stimulus package.

AIB (+9.16pc) and landlords Hibernia Reit (+3.50pc) and Ires Reit (+1.46pc) were also swept higher as the market digested the implications of the programme for government (pfg) published on Monday.

The ISEQ 20 index of major Irish shares outperformed European peers on Tuesday, led by the banks.

Davy analysts Diarmaid Sheridan said global shares were up anyway on Tuesday after fresh support from the Federal Reserve and Bank of Japan.

In Ireland, the increased likelihood of a centre right government gave an added boost to bank shares in particular which had sold off sharply after the February 8 general election on the prospect a left wing Sinn Fein led government might emerge, he said.

Concrete moves to put a Fianna Fail/Fine Gael/Green government in place by the end of this month have removed that perceived risk.

The prospect of a stimulus plan including retrofitting and mortgage supports for homebuyers is also seen as positive for banks, he said.

Builders Cairn and Glenveagh and builders suppliers like Kingspan also saw shares rise.

Online Editors