SHARE prices in Dublin surged to a new high in heavy trading with strong demand for both financial and industrial shares. At the close, the ISEQ.

Overall Index was up over 17 points on 2624.38, and dealers believe that further gains are possible today.

At that level, the Irish stock market is valued at £19.55 billion and it would take an increase of less than 2.5 per cent to bring the value of the Irish market to over £20 billion. Dealers said that, with domestic holders of stock reluctant to sell for fear, of not being able to buy back into a rising market, the strong bid interest from overseas investors was simply not being met.

The Federal Reserve's decision to hold US interest rates steady may not have bad much of an impact on international equity, markets, but the improvement in US bond prices following the decision has had a positive impact on the yield sensitive financial shares and which - in the case of the two main banks - reached all time highs.