News that the annual inflation rate in May had reached a 15-year high of 5.2 per cent failed yesterday to impact on the Dublin market, with stocks recording a modest gain of 0.22 per cent in a quiet day's trading.

However, the successful flotation in Sweden of Eircom shareholder Telia did little to relieve pressure on the Irish company and the former state monopoly gave up recent gains to lose another nine cents, closing at €3.00. Telia is expected to announce this week that it will lock up its 14 per cent stake in the company, which it ultimately plans to sell.

The leading financials recorded only slight gains in thin trading. Irish Life & Permanent added five cents to finish at €9.50 and AIB closed at €10.85, up two cents. Bank of Ireland recorded a similar gain to close at €7.40.

Of the industrials, packaging group Smurfit gained seven cents to €2.07 ahead of US price data later this week, while building materials group CRH lost 11 cents to €19.04.

Elan, the pharmaceutical group, gained €1.08 to finish at €41.75, although movements in its share price tend to be greater than with other stocks.

Of technology shares, educational software firm Riverdeep added 6.06 per cent to €3.50 after it revealed that it was in talks with a similar British firm, RM, to enter a cross-licensing deal. But larger shares suffered, reflecting a lower opening on the Nasdaq - Horizon lost 15 cents to close at €8.85 and ITG fell 45 cents to €11.75.

Budget airline Ryanair, which revealed that it had filed a formal complaint with the European Commission alleging predatory pricing against its competitor Lufthansa, was unchanged at €8.40. Recruitment group Marlborough, which is believed to be negotiating a takeover of a US online retailer, E-Pawn.com, was also unchanged at €1.80.