Despite a strong showing in the final straight, analysts believe that French construction group Lafarge has beaten AIB in the race for a coveted place on the Dow Jones Eurostoxx 50 index.

Based on the market capitalisation of both companies at last night's close, Lafarge finished ahead of the Republic's largest bank.

At lunchtime yesterday, AIB looked like it might still be in with a chance of inclusion but hopes faded in the afternoon as Lafarge shares bounced back from earlier weakness.

AIB shares closed 1.8 per cent higher at €13.20 compared with a gain of 1.2 per cent for Lafarge.

But Mr Len Riddell, banking analyst with Goodbody Stockbrokers, noted that the gap between the value of the two companies heading into yesterday was about 5 per cent.

AIB's gains on the day were not enough to have closed that gap, he said.

Davy banking analyst Mr Scott Rankin also said he was "pretty sure" AIB had failed to regain a place on the index, one of the most widely tracked stock market indices in the world.

"Lafarge certainly beat it and we're pretty sure it didn't make it on the basis that there was one place available on the index," he said.

However, Mr Rankin said he couldn't entirely rule out that a second place had become available, which AIB would be in the running to fill.

But the general consensus remains that only one constituent would be changed in the benchmark index that tracks the top 50 euro-zone blue-chip stocks.

Dow Jones, the company that runs the index, will announce on Monday, which stocks will be listed on it following the annual review.

French retailer Pinault Printemps Redoute is the stock set to lose its place although doubts have also been raised over the security of French telecoms group Alcatel's place on the index.

Inclusion tends to have a positive impact on a company's share price as it triggers buying from the index and tracker funds that use the Eurostoxx 50 to decide their asset allocations.

However, analysts said AIB shares were unlikely to suffer a heavy sell-off on failure to gain entry.

The market has felt for some time that AIB's chances of inclusion were becoming increasingly remote and the share price has fallen back as a result.

At last night's closing price, AIB shares were 8 per cent off the high of €14.40 reached mid-month on the back of speculation that it would gain an index place.