The Irish stock market lost nearly 1 per cent of its value as Elan, which accounts for more than a fifth of the ISEQ, dragged it lower. Shares in the pharmaceutical company shed €2.90, or 5 per cent, to close at €53.95 in Dublin.

The leading banks turned in a mixed performance, with Bank of Ireland gaining 14 cents to €10.39 and Irish Life & Permanent up three cents at €13.40, while AIB dropped six cents to €11.70.

Building materials group CRH was two cents firmer at €17.99 as the market absorbed the news of its €1.1 billion rights issue. Dealers said the stock had performed well given the size of the funding announcement.

Grafton, which posted a strong set of results for last year, showing a 38 per cent jump in pre-tax profits, closed 4.9 per cent higher at €32.00, although dealers said volume in the stock was light. The figures also prompted upgrades of analysts' forecasts for the company.

Power Leisure shares were up 10 cents at €3.30, boosted by the abolition of betting tax in the British budget. Eircom gained five cents to €2.54 after a strong run by Vodafone, which made early gains of 5 per cent before ceding some of this ground toward the close.

But other technology and telecoms stocks did not fare as well, suffering as the Nasdaq fell. Iona shares, which lost €3.00 in Dublin to €45.00, were down 5.2 per cent on the Nasdaq at $41.00 while SmartForce was off 4.8 per cent at $34.50.