Market Report: The impact of the Budget provided a boost for the Irish stock market with investors broadly positive about the prospects for continued strong economic growth here in the year ahead.

Paddy Power was the main beneficiary on the day with the stock storming ahead after a cut in Irish betting tax was announced by the Minister for Finance, Brian Cowen.

The shares rose by over 5 per cent, closing at €11.50, up 56 cent as brokers upgraded the group's earnings forecasts as a result of the tax cut and as a vote of confidence in the new management team.

Just last month Paddy Power issued a profit warning that triggered an almost 30 per cent drop in the share price.

Brokers now expect Paddy Power's earning to increase by around 6 per cent in 2006 and by more than 10 per cent in 2007.

News that the Government had abolished the €100 million-a-year bank levy will increase the sector's profitability and has prompted earnings upgrades but these shares largely failed to capitalise on this yesterday.

AIB lost 15 cent to end at €17.90 with dealers reporting switching out of the stock and into its main rival Bank of Ireland. It managed to make gains, adding 14 cent to see the bank close at €13.70.

Anglo Irish Bank was also weaker, shedding 10 cent to €11.80 while Irish Life and Permanent, dropped 5 cent to €16.60. FBD continued to make gains, adding 15 cent to €34.40 ahead of a trading statement later this month.

Elan was also in positive territory with the stock strengthening after agreeing a new contract with its chief executive, Kelly Martin, signalling that Tysabri will return to the market. In Dublin the shares rose to €10.70, up €1.24.

CRH failed to make any further progress and ended the session down 10 cent at €23.40 while Eircom shed 2 cent, to finish at €1.96.