* FTSEurofirst 300 index closes up 1.4 percent
* Holcim, Ahold gains after results
* Banks, commods higher
By Joanne Frearson
LONDON, Aug 20 (Reuters) - European shares closed higher on Thursday with construction stocks gaining after Holcim results pleased investors, while banks and commodity stocks performed well.
The pan-European FTSEurofirst 300 index of top shares closed up 1.4 percent at 944.94 points. The index has risen more than 46 percent from its lifetime low on March 9 as investors have become more confident over the prospects of recovery.
"The good performance today is partly linked to better-than-expected numbers from Holcim and Ahold ... as well as the strong rebound in China, which has had quite a setback," said Heino Ruland, strategist at Ruland Research.
Sentiment improved after Chinese stocks surged 4.5 percent, posting their second biggest daily percentage gain of the year, as modest signs of official support for the market helped to trigger technical buying after a 20 percent dive in the two weeks up to Wednesday's close.
Construction stocks were among the top performers. Cement maker Holcim gained 5.7 percent after it said the government stimulus packages in the U.S. and Europe would boost the construction industry next year after the downturn in the United States eased in the second quarter.
Vinci, Lafarge and CRH were up 3.3 to 4.7 percent.
Dutch supermarket group Ahold was 3.9 percent higher after it reported second-quarter profit above forecasts, as it increased market share and clamped down on costs, convincing investors of its operational strength. Banks added the most points to the index.
UBS rose 4.5 percent after Switzerland sold its stake in the bank, at the top end of its price range, a source said, making a profit from last year's rescue deal. Banco Santander, BNP Paribas and Nordea Banks were up between 1.4 to 3.2 percent.
OILS TRACK CRUDE HIGHER
Energy shares were higher as crude steadied at around $72 a barrel after a drawdown in U.S. inventories.
BG Group, BP, Royal Dutch Shell and Total were between 1.4 to 2.5 percent higher.
Miners gained, with Rio Tinto up 1 percent as it positioned itself for a comeback after posting a record drop in half-year profit and selling off shares and assets to slash debt.
Anglo American, Antofagasta, BHP Billiton, Eurasian Natural Resources Corporation and Xstrata were up between 1.9 to 5.3 percent.
Some strategists remained cautious, with stocks paring gains earlier after the number of U.S. workers filing new claims for jobless benefits unexpectedly rose last week as companies continued to cut payrolls amid uncertainty over the economic outlook.
Initial claims for state unemployment insurance benefits rose 15,000 to a seasonally adjusted 576,000 in the week ended Aug. 15 from 561,000 the prior week, the U.S. Labor Department said.
"Chart analysts would say global equity indexes are looking very overbought," said Jeremy Batstone-Carr, strategist at Charles Stanley. "The breadth of the rally is encouraging the optimists to believe this is the real thing.
"I would argue that equity markets' performance is in line with a V-shaped recovery, but the economic recovery has been muted at best. Earnings have beaten forecast, but the top line has been disappointing. How long can companies pull off this trick of increasing earnings by cutting costs?"
Across Europe, the FTSE 100 index was up 1.4 percent, Germany's DAX was 1.5 percent higher and France's CAC 40 was up 1.6 percent.
(Additional reporting by Brian Gorman; editing by John Stonestreet)