Market Report: Elan was the main story in Dublin yesterday as life returned to the Irish stock market after a slow start to the week.

Shares in the beleaguered pharmaceutical group surged by more than 20 per cent in early trade, catching up with after-hours gains made in New York following the release of scientific data confirming the efficacy of multiple sclerosis treatment, Tysabri.

But the shares later pared their gains as attention switched back to the safety issues surrounding the drug following the deaths of two patients on the drug from a rare brain disorder.

In Dublin, the stock closed 30 cent or 10 per cent higher on the day at €3.25.

Meanwhile, volumes elsewhere picked up after two days of lacklustre trade. Shares in AIB added 30 cent, or 1.8 per cent, to €16.70 amid speculation that the stock is set for further index inclusion as part of a forthcoming Dow Jones Eurostoxx review.

Irish Life & Permanent added 15 cent, or 1 per cent, to €14 while Anglo Irish Bank edged up by four cent to €19.77. In contrast, Bank of Ireland shares attracted selling interest, dealers said, although they managed to finish the day unchanged at €12.55.

Other movers on the day included Independent, as close to four million shares changed hands amid talks of a pick-up in advertising next year to cash in on the SSIA bonanza. However, the stock closed two cent lower at €2.55 as it went ex-dividend.

Grafton bounced back from Tuesday's weakness to close 22 cent, or 2.4 per cent, higher at €9.55. DCC also advanced by 20 cent, or 1 per cent, to €18 ahead of expected good full-year results next month.

In the technology sector, Iona added nine cent, or 3 per cent, to €3.09 ahead of the release of first quarter results today. The company is expected to report revenues of between $16 million and $17 million.

Shares in Tullow shed a further five cent, or 1.9 per cent, to €2.63 amid further profit-taking.

Settlement Day: April 18th