The Irish stock market closed in positive territory last night, lifted by a strong performance from AIB. The state's leading bank gained 35 cents, or 2.4 per cent, to €14.75 but dealers said it was mainly a reflection of a weak close on Friday.

The remaining financial stocks were "a mixed bag", according to one trader. Anglo Irish continued to benefit from last week's strong results, adding a further 15 cents to €17.20. But Bank of Ireland added a more modest five cents to €11.55 while Irish Life & Permanent lost five cents to €13.10.

Overall, dealers said volumes were light as a good start was undermined by poor retail sales figures in the US and continued dollar weakness.

Elan had a volatile day, rising strongly in morning trade on news that the company's multiple sclerosis drug, Tysabri, would command a higher- than-expected price. But news of a patent infringement lawsuit in the US knocked the share price later in the day and the stock closed just 15 cents higher at €20.80, having briefly touched €21.70 earlier.

DCC recovered a little after last week's sell-off, adding 11 cents to €15.56 ahead of the start of the insider trading case brought by Fyffes on Thursday.

Meanwhile, more than three million shares in the fruit importer were traded but the stock edged up by just one cent to €2.03 despite strong banana prices in Germany.

In the exploration sector, Tullow Oil added four cents or nearly 2 per cent to €2.10 after announcing a hefty gas find in Bangladesh. But in London, the main market for the shares, the stock closed two pence lower at 148 pence sterling.

Leading industrials had a quiet day with Ryanair unchanged at €5.10 while CRH edged up by seven cents to €19.30 in light volume.

More than 4.6 million Eircom shares changed hands as the stock added one cent to €1.69 while shares in Independent News & Media lost three cents to €2.22.