The Irish Stock Market notched up almost 1 per cent in active trade yesterday, with the financial sector garnering particular favour despite a lacklustre performance in key international markets. There was limited domestic reaction to the European Central Bank's (ECB) decision not to cut interest rates at yesterday's meeting, as it was widely anticipated the inflation-conscious ECB would hold fire after its quarter point cut on May 10th.

ECB president Mr Wim Duisenberg has been struggling with the dilemma of slowing growth and rising inflation in the euro zone.

In the Irish equity market, demand was buoyant with main focus on the financial sector.

Bank of Ireland, Allied Irish Banks and Anglo Irish Bank all traded in relatively large volume with some switching out of AIB, prompted by concern over its interests in the troubled US economy, into Bank of Ireland stock. Bank of Ireland ended the day up almost 2 per cent at €11.70 while AIB shed 30 cents to end at €13.50. Anglo Irish Bank saw good demand as a growth play and jumped 5.2 per cent to €4.66 while Irish Life & Permanent added 33 cents to €13.58.

Pharmaceutical stock Elan, whose weighting accounts for nearly a quarter of the ISEQ index, added 2.5 per cent to €66.07 after it announced promising results from mid-stage trials of its Antegren treatment for Crohn's disease and multiple sclerosis.

In the industrial sector, CRH, which has been having a consistently strong run of late, ran into profit-taking and dropped 54 cents to €20.63.