Dublin Report: Irish shares closed modestly higher as the market's more recent arrivals, Eircom and C&C, proved among the most active stocks on the day.

Around 26 million shares in the telecoms group were traded between Dublin and London as the stock lost two cent, or one per cent of its value, to €1.73.

Dealers attributed the high volumes to some nervousness in the market about the possibility of a rights issue linked to a deal to acquire Meteor, the third mobile phone operator in the Irish market.

Meanwhile, close to 5.7 million C&C shares traded in Dublin, with an additional 1.3 million changing hands in London, as the stock added six cent, or 1 .7 per cent, to €3.62.

Dealers said expectations of a positive trading statement from the drinks and snacks group early next month, and anecdotal evidence that Magners is being well received in London, were helping to lift the shares.

AIB was another of yesterday's gainers, adding 12 cent or 0.7 per cent to €17.33 as news that the merger of two Italian telecoms companies would go ahead as planned at the end of the month cleared the way for its admission to the Dow Jones Euro Stoxx 50 index.

Its main banking rivals did not have as good a day, however, as Anglo remained under pressure, closing one cent lower at €9.75, while Bank of Ireland gave up four cent to €12.85. But Irish Life & Permanent added 15 cent, or one per cent, to €14.10, ahead of today's trading update.

DCC continued the strong run seen since last week's acquisition announcement, firming by a further 16 cent to €17.10 as dealers said a big seller had been cleared out, paving the way for the stock to move forward.

Insurance group FBD was another notable mover yesterday, adding 70 cent or 2.9 per cent to €24.80, lifted by solid buying interest.

Greencore was active ahead of the EU sugar reform proposals, with more than three million shares traded as the stock added two cent to €3.45.