The Irish stock market closed marginally lower yesterday in mixed trade with some switching in banking stocks and an element of catchup selling in pharmaceutical firm Elan-dominating play. Elan fell 70 cents to #72.30 as the Irish market brought its prices into line with the US.

The stock, which accounts for a quarter of the Irish index, fell sharply in profit-taking in the US after the Irish market closed on Friday. There was a significant element of catch-up in trade in the stock yesterday as a consequence.

Bank of Ireland benefited from a "buy" recommendation by a large UK financial house which favoured Bank of Ireland over Allied Irish Bank. Bank of Ireland added 10 cents to end the day at #11.80 having traded as high as #12.00 during the day. AIB closed up three cents at #13.23.

CRH saw some strong interest and the group's share price ended up 23 cents at #20.03. The group, which derives about half its revenue from the US, was a beneficiary of positive data there.

Second-line stocks were less buoyant particularly the construction sector where Grafton, Kingspan, and Readymix all traded lower. Grafton shed four cents to #3.35, Kingspan was down eight cents at #3.95 and Readymix lost two cents to #1.40.

There has been a significant mark-down in estimates for the construction sector in Ireland of late which is feeding negative sentiment for the sector.

Northern Irish specialty drugmaker Galen Holdings added 24 cents to #13.85 in the Irish market but fell on the London stock exchange and Irish analysts expected the stock to trade down about 6 or 7 per cent when it next trades on the ISEQ.

The company announced that it was raising £200 million sterling (#334 million) which will partly be used to pay for Estracea tablets which it is buying from US pharmaceutical firm Bristol-Myers.

Horizon traded down 6 per cent to #1.50, which is close to its initial public offering level.