The ISEQ Index of Irish shares dropped 7.15 points to 5,586.04 yesterday in a day that dealers again described as quiet, writes Barry O'Halloran.

"Volumes were light and there was not much happening at all," one trader said at the close of business.

AIB lost five cents to close at €13.75 with two million shares traded. Bank of Ireland had volumes of 2.1 million, and dropped seven cents to close at €10.92. Irish Life & Permanent recovered some of the ground it lost earlier in the week, adding nine cents to finish at €12.91.

Anglo Irish Bank was again the best performing financial, gaining 32 cents to close at €15.30.

Dealers said the market responded positively to the news that the bank was talking to investors in the US.

Elsewhere, investors picked up 1.7 million shares in C&C, leaving it four cents stronger on the day at €2.50. The group posted a 6 per cent increase in first-half operating profit earlier this week.

However, dealers said buyers were responding to a research note from NCB Stockbrokers, which set an ambitious target price of €2.95 for the makers of Ballygowan and Bulmers and re-rated the company to "buy". NCB believes that it will benefit from strong growth in the premium bottled drinks market.

Brokers' research also had an impact on CRH's price. Merrill Lynch issued a note downgrading the global building materials sector. Investors responded by offloading 1.6 million shares, leaving the group 12 cents off its overnight close at €18.75.

Food group Kerry shed 16 cents to close at €17.50, with volumes just below the two million mark.

In the same sector, buyers showed an appetite for Greencore, taking up 1.2 million shares and adding 13 cents to its price to bring it to €2.76.

Ryanair ended the week on a positive note with a five-cent gain to €3.72, as 7.6 million shares changing hands, the biggest volume of the day.