Market Report: The Irish stock market closed higher yesterday, lifted by a good performance from the financial shares despite a mixed backdrop overseas.

Bank of Ireland shares gained 14 cents, or more than 1 per cent, to €10.58 as the bank said it expected to perform well this year. It told shareholders at its annual meeting that its Irish operations had performed strongly over the first three months and that it was achieving growth in Britain. "It was a very solid statement although there have been no changes to forecasts," one dealer noted.

Other banking stocks also moved ahead yesterday with AIB adding six cents to €12.31 while Anglo Irish Bank benefited from a more positive attitude among investors to close 22 cents higher at €12.70.

Irish Life & Permanent also gained ground, closing 13 cents higher at €12.55.

CRH, which was lifted by a strong trading update on Tuesday, continued to edge higher, closing at €18.05, a gain of seven cents on the day.

The positive comments from the building materials company, allied to strong new home registration figures for June, lent support to other companies in the housebuilding sector.

Abbey added 45 cents, or more than 5 per cent, to €8.85 while McInerney edged up by a more modest one cent to €5.22.

Heiton failed to benefit, however, amid continued uncertainty about Grafton's intentions toward the group. The shares closed seven cents lower at €6.50.

DCC added 10 cents to €14.60 ahead of today's annual meeting, helped by the acquisition of Bottle Green, a Leeds-based wine business for an initial €19.5 million.

Greencore shares closed three cents, or close to 1 per cent, higher at €3.07 as the company announced the sale of its interest in James Budgett Sugar in the UK for €9.05 million.

Donegal Creameries, which held its annual meeting yesterday, finished 18 cents higher at €4.48.