MARKET REPORT: The market gained 0.5 per cent yesterday as most of the leading stocks made modest progress.

Settlement Date: April 14th

Dealers reported good two-way trade in the two main financial stocks as news of the new Bank of Scotland business banking initiative focused attention on the sector. Close to 5.7 million AIB shares were traded while volume in Bank of Ireland was close to six million.

AIB, which closed three cents higher at 12.98, confirmed that it was back in the market on Tuesday to buy 305,000 shares at an average price of 12.90 and a further 32,000 shares at a price of $13.83.

Meanwhile, Bank of Ireland added 10 cents to ?10.20 despite being downgraded by Merrill Lynch on foot of likely lower earnings from its market-related activities such as asset management.

Elsewhere, CRH added 13 cents to 13.31. Ryanair was subdued, however, closing just one cent higher at 6.68.

Paddy Power was one of the bigger losers on the day, shedding nearly 6 per cent at one stage following a profit warning from British rival Stanley Leisure. However, the shares later recovered some ground to close 20 cents, or 3.6 per cent, lower at 5.40.

By contrast, DCC added 20 cents to 10.55 as it enjoyed a bit of a run ahead of its upcoming release of results.

There was heavy trading in Ardagh, with 1.6 million shares changing hands, as the stock added 10 cents to 0.60.

Heiton was unchanged at 2.65 as it announced it had bought back 2,395 of its 6 per cent cumulative preference shares at 1.27 each. The shares are being cancelled.