Market report:Pharmaceutical group Elan was the story of the Irish market yesterday and, for a change, the news was good.

In fact, the stock's 19 per cent jump on the back of news that it is starting phase-three trials of its treatment for Alzheimer's disease was the main contributor to the 1.1 per cent gain in the Iseq.

News that Elan, along with its partner Wyeth, is to press ahead with phase three trials of its drug bapineuzumab was welcomed by analysts, one of whom described the move as particularly significant given the fact that the acceleration of the drug into a phase-three study would only go ahead if the interim data had shown a significant improvement in the patient's condition.

The stock rose €2.17 cent, to close at €13.87, with as many as 1.2 million shares changing hands. Dealers said the stock was very busy in early trading in the US.

Elsewhere activity was relatively quiet on what one dealer described as a subdued Monday.

Shares in Independent News & Media (IN&M) fell as much as 2.2 per cent after fund manager Perpetual, the second-largest shareholder in APN, the Australian media group that is subject to a takeover bid by IN&M, said it would vote against the offer. APN shareholders are due to vote on the bid on Friday.

The stock did, however, recover some ground, closing down 2 cent, or just over half a per cent lower, at €3.64. As many as 2.4 million shares traded.

Ryanair had a good day, gaining 11 cent, or 2.1 per cent, to close at €5.40. Dealers said the gains came as chief executive Michael O'Leary tried to alleviate the negative comments made last week regarding a decline in fares and yields.

Elsewhere, McInerney shares closed at €2.77 after a five-for-one stock split.

Settlement day: May 24th