It may have been Budget day, with the attention of many in the market diverted towards Leinster House, but the Irish market still put in a sturdy performance despite early weakness on Wall Street.
And further gains may be in the offing as a result of the Budget, with the cut in corporation tax and reductions in capital gains tax likely to benefit the market, although the changes in the treatment of tax credits on dividends is a negative for pension funds in particular. There was little in the Budget to have any impact, positive or negative, for the gilt market.
Financials, which are likely to benefit most from any Budget-driven upswing today, were in good form yesterday and most in the sector closed up on the day in some sizeable trading. AIB was 6p higher on 622p, Bank of Ireland gained 5p to 930p, Irish Permanent added 9p to 665p, Anglo Irish Bank added 1p to 112p as chief executive Mr Sean FitzPatrick exercised options and was 7 1/2p higher in a sterling-denominated deal the equivalent of 360 1/2p.
Avonmore Waterford closed 5p lower on 240p, CRH was 2p easier, Fyffes gained 4p to 110p with some attributing the recent gains by the share to the disclosure that US investor Mr David Herro is a 3 per cent shareholder. Mr Herro, however, has been on Fyffes's register for the best part of a year. There was some sizeable sterling denominated trading across a variety of shares, including Greencore, Jermyn, Providence and Ryanair.
