Market Report: It was a day of extremes in the Irish market yesterday. Most of the members of the Iseq index of Irish shares had a healthy day, buoyed by takeover speculation in the banking sector and the promise of takeover activity in the building materials arena.

However, the fate of one stock was totally the reverse, with downbeat comments about the yield environment by Ryanair chief executive Michael O'Leary sending Ryanair shares tumbling.

"The issue here was the way they took the market by surprise," said one Dublin trader.

As many as 31 million shares changed hands in Dublin, and the stock ended the day down 32 cent, or 5.2 per cent, at €5.80.

Despite this, the general tone in the market was positive, and after a downwards move earlier in the day the Iseq got a significant boost towards the end of the session on the back of news that Germany's Heidelberg Cement was considering making a bid for British building materials company Hanson. Shares of CRH surged on the news, ending up 6.4 per cent, or €2.12, at €35.35.

Grafton added 9 cents, to end the day at €11.45, and dealers said they expected to see more momentum in the building materials sector tomorrow.

Elsewhere, the banks continued to do well, with Wednesday's rumour that HBOS was looking at Bank of Ireland providing yet more momentum.

Bank of Ireland closed up 1.6 per cent, or 27 cents, at €16.72. Anglo was the biggest gainer, up 2.2 per cent, or 38 cents, to €17.40.

Elan jumping 8 per cent, or 80 cents, to €10.80, after it reiterated the ongoing safety record of its Tysabri multiple sclerosis drug at a conference in Boston.