Elan's slump bucks trend during strong rally on Iseq

MARKET REPORT:IT WAS another positive day on the Irish market yesterday, as financial stocks took the lead from their rallying British peers. Overall, the Iseq outperformed other European markets, closing up by 85.95 points, or 3.2 per cent, at 2,765.32.

However, the big story on the day was the decline of Elan, which fell by about 40 per cent on opening, following the announcement that another patient taking its multiple sclerosis drug Tysabri was diagnosed with a potentially life-threatening brain illness.

The stock later recovered some ground to finish the day down by 93 cent, or 15.9 per cent, at €4.92.

Among the financials, all the major names finished up in fairly light trading on the day, as stocks benefited from central banks lowering interest rates and the continued decline in money market rates.

Anglo Irish Bank, which has been the underperformer of late, was the best on the day, gaining 29 cent, or 17.1 per cent, to advance to €1.99.

Allied Irish Bank was also strong during the session, advancing by 30 cent, or 9 per cent, to finish the day up at €3.65. Bank of Ireland added five cent, or 3.3 per cent, to rise to €1.63, while Irish Life Permanent also closed up by five cent, or 2.3 per cent, at €2.15.

Paddy Power remained strong yesterday, as it continued to benefit from a solid performance by the sector in the UK. It finished the day up €1.10, or 9.8 per cent, at €12.30.

CRH advanced by €1.32, or 8.6 per cent, to €16.70, in decent trading volumes, as the strengthening dollar earlier in the week continues to boost the stock.

However, other construction stocks Kingspan and Grafton were weak. Kingspan lost 13 cent, or 2.8 per cent, to fall to €4.51, while Grafton dropped four cent, or 1.6 per cent, to finish at €2.40.

Settlement date: November 4th