The Irish stock market closed nearly 1.4 per cent higher, lifted by a strong performance from Elan and relief in international markets at the transfer of power in Iraq.

Shares in Elan soared on news that the US Food and Drug Administration would fast-track consideration of its Antegren drug for treating multiple sclerosis. In Dublin, the shares added €1.44 or more than 7 per cent to €20.89. In New York, where they are mainly traded, they were up $1.15 or nearly 5 per cent to $25.12 by the Irish close.

Kingspan was another strong performer yesterday, adding 13 cents or 2.7 per cent to €4.98 in the wake of an upbeat trading statement. In particular, the market welcomed the turnaround in the company's raised access flooring business in the US.

Company broker Goodbody has raised its forecasts for Kingspan in the wake of the statement and has upgraded the shares to a "buy" from an "add", setting a price target of €6.00 per share.

Shares in Independent News & Media edged up by two cents to €1.95 as the company said its full-year earnings would be in line with market forecasts and announced the separation of the role of chairman and chief executive.

Elsewhere, Grafton shares edged up by seven cents to €6.40 as the company said it had not yet decided what to do about a possible offer for the rival Heiton Group. Heiton shares closed 19 cents lower at €6.50

C&C Group shares performed solidly, adding two cents to €2.52. Deutsche Bank initiated coverage of the stock yesterday with a "buy" rating and a price target of €3.30 per share.

Other movers yesterday included Ryanair, up nine cents or 2 per cent to €4.59 as dealers reported some hedge fund activity in the stock.

The leading banks also closed higher with AIB up 12 cents to €12.52, Bank of Ireland adding nine cents to €10.91 and Irish Life & Permanent gaining 12 cents to €12.55.

Dublin ReportSettlement Day: July 1st