Market Report: The Irish stock market gave up ground yesterday, hit by a weaker tone in international markets in the wake of disappointing US consumer confidence data.

A poor performance by financial stocks also contributed to the 0.7 per cent drop in the ISEQ index.

AIB, which remains the centre of controversy following further revelations of improper practices at the bank, lost 42 cents or nearly 3.5 per cent, to €11.60.

Dealers said overseas investors were beginning to take notice of the situation at the bank, although the general weakness among financials was also behind the drop.

Bank of Ireland shares shed 40 cents, or nearly 4 per cent, to €9.70, while Anglo Irish Bank was down 26 cents, or 2 per cent, to €13.00.

CRH shares added two cents to €17.40 as the European Commission approved its acquisition of a 49 per cent stake in Portuguese cement maker Secil.

Ryanair shares lost one cent to €4.34 ahead of next week's results and as ongoing worries about oil prices weighed on the sector.

Elan was a strong performer on the day, adding 75 cents, or 4 per cent, in Dublin to €19.35.

Kingspan and Eircom also benefited from their proposed inclusion in the MSCI index. Close to 2.9 million shares traded in the building materials group as it added 10 cents, or 2 per cent, to €4.85 while more than eight million Eircom shares changed hands as it gained nine cents, or 6.4 per cent, to €1.49.

DCC was another strong performer yesterday, adding 45 cents or close to 3.5 per cent to €13.35 in the wake of its recent results and as its management team hit the investor roadshow circuit.

Tullow Oil, which announced that its offer for Energy Africa had been declared wholly unconditional in all respects, edged up by one cent to €1.53.