Market Report

The stock market drifted lower yesterday, albeit in light volumes, as most of the larger stocks again gave up ground.

Dealers said AIB came under pressure, losing 20 cents to Eur 12.60, as the bank said it had completed its share buyback programme with the purchase on Wednesday of 1.47 million shares at an average price of 13.07 per share.

Analysts estimate that the bank spent 483 million buying back stock at an average price of 13.44 per share. However, it pointed to the possibility of further buybacks in the future, noting it continued to "keep the management of its capital under review".

Meanwhile, Bank of Ireland, which was also in the market on Wednesday to buy 1.5 million of its own shares at 11.02 per share, lost five cents to 10.85.

Irish Life & Permanent was down five cents to Eur 10.45, although dealers said it was not affected by the controversy over a recent note by Merrion Stockbrokers advising clients to reduce their holdings of the stock.

Ryanair was one of the few gainers on the day, adding six cents to 6.04 ahead of the release of results next week.

Despite news that it had raised a further $70 million from the sale of shares it owned in Ligand, Elan closed 18 cents lower in Dublin at 5.00. Elsewhere in the pharmaceutical sector, Galen gave up 14 cents to 8.01.

Other losers on the day included CRH, down eight cents to Eur 12.72.

However, Fyffes added six cents to 1.55 ahead of today's annual meeting. The stock, along with Grafton, which was up three cents yesterday to 3.75, is expected to benefit from its inclusion in the MSCI Ireland index from the end of this week, brokers said.