Shares edge ahead as Elan hits new record

Shares on the Dublin exchange rose by 0.99 per cent yesterday as drug group Elan reached another all-time high and financials eased slightly after strong gains on Thursday. The ISEQ index rose by 51.83 to close at 5,264.13 in what dealers described as positive trading.

Elan reached the new high - its third last week - in a 2.52 per cent rise of €1.50 to close at €61. The stock, which has more than doubled in value this year, is being driven by strong interest among US investors, according to traders.

Tech stock Iona was also well bid, rising by 8.31 per cent in late trading to finish €6.25 stronger at €81.50. On the Nasdaq in New York, the stock was trading at $74 shortly after lunchtime yesterday, 1.46 per cent stronger than its previous close.

Of the financials, AIB reversed marginally after a strong day on Thursday, dropping 5 cents to close at €9.45 after it reported better halfyear results. Bank of Ireland, which has revealed plans to close five branches in Dublin, was also weaker. The stock fell by 2.31 per cent to €7.20, down 17 cents on the day. A trader said no particular factor was at work in the decline.

By contrast, Irish Life & Permanent had a good day after it largely missed out on gains during the week. The stock added 3.05 per cent in a 25-cent rise to €8.45 in strong trading. "It's the first time we've seen those sort of volumes in a long time," a trader said, adding that the stock's value had been depressed recently. Interest from a single buyer was the most likely cause of the rise, he said.

Of the other benchmark stocks, long-suffering Eircom added 2.27 per cent in a 6-cent rise to close at €2.70 - 15 cents higher than the alltime low hit last Monday.