Dublin report:It was a lacklustre start to the week yesterday, as an absence of local news gave little impetus for stock movement.

The Iseq index of Irish shares opened the day on an optimistic note, but soon gave up some of its gains and ended the session little changed.

The banks, however, were positive, with significant activity in AIBindicating that investors had taken note of a commentary by Merrill Lynch favouring AIB over Bank of Ireland. More than 3.7 million AIB shares changed hands in Dublin as the stock added 18 cent to close at €22.88.

By contrast, Bank of Irelandslipped back 1.2 per cent, or 20 cent, to €16.35 with two million units trading.

Anglo Irish Bank, Merrill Lynch's number one choice among the Irish banks, rose 1.5 per cent, or 25 cent, to close at €16.65. As many as 1.1 million shares changed hands.

Outside of the financials, dealers said activity was subdued, with low volumes in most of the Iseq's main components. One of the few exceptions was drinks group C&Cwhich, after rising 1.5 per cent, was subject to significant selling. This pushed the stock down 2 per cent, or 26 cent, to €12.34. Almost 2.2 million shares changed hands.

Elanwas another stock on the move, adding 27 cent, or 2.5 per cent, to close at €11.22 ahead of first-quarter results today.

Other movers, though on very light volumes, were Zamanoand Qualceram.

Mobile phone data services provider Zamano rose four cent, or 9.8 per cent, to 45 cent after announcing the acquisition of Eirborne Text Promotions for €1.7 million.

Shares in bathroom suite manufacturer Qualceram closed up 2.5 per cent, or five cent, at €2.05 after confirming its Arklow facility was up for sale.