The Irish stock market closed lower yesterday as financial stocks reversed Monday's gains. AIB was again the most active in its sector, with some three million shares changing hands as it lost 27 cent, or 1.4 per cent, to €19.20.

Anglo Irish Bank gave up 25 cent, or 1.8 per cent, to €13.45, while Bank of Ireland shed 21 cent, or 1.4 per cent, to €15.04, despite a lack of news in the sector. Only Irish Life & Permanent, which missed out on Monday's rise, closed five cent higher at €18.40.

CRH also stayed positive, adding five cent to €27.80 as the company announced plans to switch trading of its American depositary shares from the Nasdaq to the New York Stock Exchange.

Grafton, which releases full-year results today, edged up by five cent to €10.57 ahead of the figures. Bid speculation around UK home improvement retailer Kingfisher lent strength to the sector, dealers said, while Kingspan had a good day, gaining 15 cent to €12.10.

Eircom struggled again, however, slipping by four cent, or 1.8 per cent, to close at €2.13 as the absence of support from Babcock & Brown for the stock saw it slide. With a stake of 28.8 per cent, the Australian investment fund can only buy a further 1 per cent of Eircom shares without triggering an obligatory bid for the company.

Despite posting a healthy set of first-half results on Monday, shares in food group IAWS lost further ground, closing 13 cent lower at €14.02. Greencore, however, edged up by three cent to €3.75. Shares in Paddy Power gained two cent to €13.02 as the Cheltenham racing festival got underway although dealers said the victory of Irish favourite, Brave Inca, in the Champion Hurdle was probably bad news for the bookmaker.

In the exploration sector, Tullow Oil continued to move ahead, adding a further 13 cent or 2.8 per cent in Dublin to €4.70. In London, the shares closed 10.75 pence, or 3.4 per cent, higher at 327.75 pence.