After heavy selling of Elan on Monday, the pharmaceutical stock managed to stabilise yesterday. At close of business in Ireland, Elan was trading marginally better on the New York Stock Exchange at $34.60, compared to just over $33 on Monday. Much of the volatility had gone out of the stock, which was reflected in trading volumes of less than five million shares - compared to 15 million on Monday.

On the ISEQ, Elan finished the day 50 cents weaker at €41. This, combined with a drop in other big stocks such as CRH and a slight weakness in the big financial stocks, helped to push the ISEQ down 48.49 points to 5,473.41.

Despite falling back, Irish bank stocks remained in reasonable demand, outperforming their European peers - where bank stocks dropped by 2 per cent.

AIB, which traded as high as €13.35 at one stage, slipped back in later trading, eventually ending the day 15 cents weaker, at €13.10. Bank of Ireland dropped nine cents to €10.83, while Irish Life & Permanent was four cents weaker at €12.36. First Active lost three cents to close at €3.57. Anglo Irish bucked the trend, picking up three cents to €4.51.

CRH slipped off significantly in the afternoon on light volumes of just under one million shares traded. It closed the day 50 cents weaker at €18.14. DCC continued to drift from its recent highs, yesterday shedding 77 cents to €11.

Kerry Group continued its upward trend, gaining five cents to €15.15, while Ryanair enjoyed a good run despite light volumes. It was four cents stronger at €6.79. United Drug, which placed 1.15 million shares at €14.50 per share, dropped five cents to €14.60.