The FTSE Eurofirst 300 saw gains for the second straight day on Thursday, rising by 0.7 percent to 1,185.83.

Builders were the big winners of the day as it become clear just how much reconstruction will be necessary on the Gulf Coast of the United States in the wake of Hurricane Katrina, and shares in insurers and reinsures moved little as it was still unclear exactly how much that rebuilding will cost.

Builders and building materials suppliers in Europe benefited from the impression that US companies will be unable to provide all the materials needed for the recovery effort. The world’s biggest cement maker, Lafarge, gained 2.9 percent to €77.20.

Lafarge already does over half of its business in the US. Elsewhere in the sector, Holcim was up 1 percent to SFr82. Spanish builder ACS added 3 percent to €25.08 on a strong report of first-half profits due to its participation in the Spanish building boom and expansion into industrial services.

Insurers and reinsures were mixed as analysts said that any estimates of the monetary damages caused by Katrina were sheer speculation, considering that many areas were still inaccessible.

Swiss Re was up by 0.3 percent to SFr81 and Munich Re gained 0.1 percent to €90.90, but Hannover Re lost 1 percent to €28.82. The biggest loser of the day was Deutsche Post, which dropped 3.9 on the day to €19.65 amid heavy trading after it was revealed that it had made a bid to purchase Exel, the British logistics group.

Another 1995 spinoff from the former Bundespost, Deutsche Postbank saw an advance on the day, adding 3.5 percent to €46.01 as JP Morgan raised its target price to €40 per share from €32.