Market Report: The Irish stock market outperformed its overseas counterparts yesterday, notching up a gain of 1.25 per cent on the back of positive performances by the banks and Elan.

Dealers reported particular interest in Bank of Ireland with some 10 million shares traded between Dublin and London.

The shares rose by 18 cents, or nearly 2 per cent, to €10.10 amid good institutional interest in the stock.

Volume in AIB was a lot lighter, with less than 700,000 shares traded in Dublin, but the stock advanced by 26 cents to €11.98 on the day. Anglo Irish also logged gains, closing 20 cents higher at €13.10.

Elan shares were boosted by the news that it had applied for FDA approval for its multiple sclerosis drug, Antegren, in the US, gaining 81 cents or 4.5 per cent to €18.86 in Dublin.

An analysts' site visit to CRH's operations in the Netherlands did little for the share price, which closed unchanged at €17.38. Meanwhile, Ryanair shares finished two cents lower at €4.37 as the market awaited next week's results.

The most heavily traded stock on the Irish market yesterday was travel software firm Datalex. More than five million shares changed hands as the stock closed two cents lower at €0.52.

Mr Neil Wilson, the founder of the company and its former chief executive, is believed to have been the seller.

Other movers included Kingspan, which added three cents to €4.71 ahead of today's annual meeting and Kerry, which continued its recent run, gaining 23 cents to €17.08.

Elsewhere in the food sector, Greencore added three cents to €3.01 in the wake of its interim results while Glanbia shed 10 cents to €2.20.

Eircom remained weak, losing a further cent to close at €1.39. However, along with Kingspan, it is due to be included in the MSCI index from the end of this week, which may provide some support for the share price.