MARKET REPORT: Business picked up yesterday, but gains were limited as investors continued to search for some direction.

Barlo was again in the spotlight as the market continued to question how well Dr Tony Mullins's buyout offer of 40 cents per share values the company. Shares closed at 42 cents last night, up one cent on the day, although volume was insubstantial.

Glanbia climbed another 4.2 per cent to €2.45 on growing positive sentiment.

Kerry Group was less sound, with shares falling by 10 cents to €14.15. Merrion has downgraded its forecasts on the company to reflect dollar strength.

The main banks were busy, with dealers reporting greater demand for AIB, which gained six cents to close at €13.22.

Bank of Ireland, which bought back 100,000 of its own shares at €10.98 on Monday, closed unchanged at €10.99.

Anglo Irish Bank remained under pressure in the wake of last week's placing, with shares falling five cents to €12.88. There is a suggestion in the market that hedge funds have become more active in the stock.

Irish Life & Permanent dropped 12 cents to €13.58.

Bumper results from McInerney prompted some profit taking in the stock, with shares finishing at €5.25, down five cents. Abbey fell 10 cents to €7.70 on much lower volume.

CRH came under some pressure in early trade but managed to close five cents stronger at €16.95. Grafton was in demand as it rose 10 cents to €5.95, while Heiton climbed six cents to €4.75.

Irish Continental declined 25 cents to €12.15 against a backdrop of industrial relations problems.

Paddy Power did well on relatively low volume, gaining 17 cents to close at €7.60. Elan shed five cents to close at €6.90 in advance of today's results.

Trinity Biotech, which posted solid full-year results, was 5 per cent lower at $4.24 by mid- afternoon on the Nasdaq but closed unchanged at €3.65 in Dublin.