Dublin report: Yesterday was a day for the food stocks, with two Iseq stalwarts IAWS and C&C stealing the limelight from the airlines which have been hogging the attention.

IAWS, producer of the Cuisine de France range, was the star performer, jumping 7 per cent after announcing it had agreed to buy US baker Otis Spunkmeyer in a deal worth $561 million (€448 million). The acquisition, due to be complete by the end of the month, significantly enhances the group's exposure in North America and is expected to enhance earnings almost immediately.

The shares added €1.05, to end the day at €16.10.

Elsewhere drinks and snacks maker C&C also put in a sterling performance, rising 54 cent, or 4.7 per cent, to close at €12.14.

The stock is continuing to benefit from the strong interim results released last week and the ensuing analyst upgrades.

The financials also put in healthy performances, with Bank of Ireland leading the way to end the day up 25 cent, or 1.6 per cent, at €15.85.

Allied Irish Bank, which last week rose significantly on the back of rumours that it was a possible takeover target for US bank Citigroup, was up marginally after holding onto its gains despite Citigroup releasing a statement saying it intended to focus on organic growth. The shares closed up 8 cent, or 0.4 per cent, at €21.55.

Anglo Irish meanwhile rose 8 cent, or 0.6 per cent, to end the day at €13.86.

Dragon Oil was also a gainer after announcing an increase in average daily production from one of its sites offshore Turkmenistan. The shares added 9 cent, or 4 per cent, to close at €2.31.

Speculation that it is to apply for a betting license in Italy boosted shares in Paddy Power, which ended the day up 20 cent, or 1.4 per cent, at €14.60, though volumes were light.