MARKET REPORT: The Irish stock market edged higher yesterday as a strong performance from financials outweighed continuing global worries about the price of oil.

AIB advanced by 22 cents, or 1.6 per cent to €13.89, helped by continued but vague merger speculation while Bank of Ireland closed 15 cents higher at €11.17.

However, dealers reported switching out of Bank of Ireland and into AIB in the wake of the former's recent trading statement and amid worries about its fund management business.

There was further bad news for Bank of Ireland Asset Management (BIAM) yesterday when one of Canada's largest fund managers, RBC Asset Management, said it had decided to stop using BIAM following the recent departure of four members of its investment management team.

Anglo Irish Bank remained in demand, adding 15 cents or nearly 1 per cent to €15.30 while Irish Life & Permanent closed six cents higher at €13.37.

Despite good September traffic data, Ryanair lost 11 cents or 2.7 per cent to €3.98, hit by continued oil price worries.

In contract, Kerry Group continued its onward march, hitting an all-time closing high of €18.00, up 20 cents on the day.

Elsewhere in the food sector, IAWS shares gave up six cents to €10.25 as 1.5 million shares were traded, with some dealers suggesting Kerry Group may have accounted for the bulk of the shares sold.

Independent News & Media also remained in favour, closing seven cents or 3 per cent higher at €2.17 as some 2.3 million shares changed hands.

Eircom shares added one cent to €1.54, just shy of their flotation price.

Among the losers was Elan, which lost 92 cents or nearly 5 per cent in Dublin to €18.38.

IWP, which held its annual meeting yesterday, gained one cent or 7 per cent to €0.15.

Ormonde Mining made further gains, adding one cent or nearly 7 per cent to €0.16.