MARKET REPORT: The stock market closed 0.4 per cent lower yesterday, affected by a weak performance in both London and New York in the wake of disappointing US economic data.

Settlement Date: May 7th

However, trading was muted with most continental European markets shut for the May Day bank holiday. With the German market closed, the electronic trading platform used by the Irish Stock Exchange was unavailable. Although it put in place contingency trading measures, dealers said volume was still down as visibility in the market was not as good as normal.

Financial stocks drifted lower on the day with AIB losing 22 cents to 13.53 and Bank of Ireland off a more modest four cents to 10.91.

Anglo Irish lost two cents to 6.72 but market reaction to its recent results remained positive with Goodbody Stockbrokers upgrading its 2003 and 2004 earnings per share estimates for the bank by 4 and 5 per cent respectively.

Arnotts was one of the best performers on the day as the shares leaped by 1.00 to 13.75 as the market responded to Wednesday's announcement of an indicative offer of €14.2625 per share for the company from a consortium led by non-executive director, Mr Richard Nesbitt.

In New York, Elan shares had added 19 cents, or 5.6 per cent, to $3.55 by the Dublin close as the market absorbed the first-quarter figures released earlier this week. But in Dublin, the shares gained just five cents to 3.05.

Other movers on the day included Ryanair, off eights cents to 6.05. Irish Continental continued to benefit from its upbeat trading statement, edging up by three cents to €8.50 while Grafton also moved ahead, adding eight cents to 3.60.