Dublin report:The Irish market dipped slightly yesterday on what dealers described as a hesitant day across the board. Volumes were light in most stocks.

One stock in demand however was Anglo Irish Bank, which saw more than 3.9 million units change hands in Dublin as dealers reported significant two-way interest in the stock. The shares fell 24 cent, or 1.5 per cent, to end the day at €15.74.

One dealer said the stock took a bit of a hit in the afternoon after Merrill Lynch released a note saying the bank may have to raise new capital as an increase in the risk rating of some of its assets puts pressure on capital. Merrill said Anglo currently has limited access to additional capital, an issue that is likely to be addressed at the bank's AGM on Friday in a special resolution seeking to raise the authorised share capital. Last year the company raised additional funds in January.

The other banks followed suit, also ending the day in negative territory. Bank of Ireland fell 22 cent, or 1.3 per cent, to €17.30 on 2.1 million trades. AIB meanwhile slipped 10 cent, to close at €22.20.

Recruitment group CPL put in a strong performance, adding 14 cent, or 2.1 per cent to close at €6.98. Dealers said the group was benefiting from a raft of earnings upgrades following positive results last week. NCB recently raised its target price for the stock to €8.20.

Elsewhere Ryanair held on to some ground despite the rise in the oil price. The shares closed up 9 cent, at €11.12. It is due to release third-quarter results on Monday.

Interest was high again in drinks group C&C, though this time the shares pushed marginally higher. The stock closed up 6 cent, at €11.20 on 4.7 million trades.