Market Report:Elan was the star performer on the Irish stock market yesterday, surging by more than 11 per cent as hopes grew that Tysabri would be successful in its bid to return to the market.

Following gains of more than 7 per cent in the stock in the US on Monday, Elan shares jumped by 91 cent yesterday to close at €8.99 in Dublin.

Elsewhere, the performance of Irish stocks was less inspired as most of the leaders gave up ground and the ISEQ finished marginally lower.

Although Anglo Irish Bank continued to trade in good volume ahead of its full-year results next week, the shares shed six cent to €11.06.

The other banks were also among the day's losers. AIB lost 11 cent to €17.46, Bank of Ireland was down by five cent to €12.93 while Irish Life & Permanent gave up 10 cent to €15.40.

Industrial stocks did not fare any better, with CRH losing 14 cent to €21.78 while Ryanair retreated from Monday's highs to close five cent lower at €7.34.

Irish Continental Group meanwhile continued to feel the fallout from Monday's adverse Labour Court ruling for the company.

The shares lost a further 12 cent, or 1.2 per cent, to €10.35.

In the telecommunications sector, Eircom eased by two cent to €2.27 despite releasing what analysts described as a solid set of results.

Dealers blamed a poor performance from the sector for the drop.

In London, Vodafone lost nearly 11 per cent, its biggest percentage fall since 1998, amid concerns about its struggling Japanese unit. More than two billion Vodafone shares were traded as the mobile phone group knocked 40 points off the FTSE, which finished the day 30 points lower.

The food sector provided one bright spot in the Irish market as Greencore added three cent to €3.23 despite a flat performance from Northern Foods chilled foods division.

Kerry Group also closed higher, adding 14 cent to €18.34.