Bank of Ireland's €120 million cost-cutting plan received a fairly muted market reaction yesterday, with the shares shedding three cents to €12.30.

Volume in the stock was also relatively light, with just two million shares traded in Dublin, as dealers said the announcement had been well-flagged.

In addition, there was some disappointment that the cost savings would be delivered over four years rather than the expected three-year period.

There was also concern over the continued weakness of the bank's asset management subsidiary.

Elsewhere in the banking sector, the picture was weak as AIB shed seven cents to €15.85, Anglo Irish Bank lost 18 cents to €19.97 and Irish Life & Permanent closed at €13.85, down five cents on the day.

Generally, the market had a lacklustre day as the proximity of St Patrick's Day and the Easter holidays dampened liquidity.

Overseas markets also failed to provide much direction as investors sat on the sidelines ahead of the outcome of the US Federal Reserve meeting.

The Iseq barely budged on the day, closing just 0.01 per cent higher.

Ryanair shares got a lift from a positive trading statement from rival EasyJet, finishing 12 cents or 2 per cent higher at €5.89.

Dealers said that, despite high oil prices, the stock was also supported by moves by rivals such as British Airways to add fuel surcharges to the cost of tickets.

Grafton Group also had a good day, adding 28 cents or 3 per cent to €9.63 as the market reacted belatedly to positive first-half results from its British rival, Wolseley.

Other good performers on the day included DCC, up 35 cents or 2 per cent to €17.60, and United Drug, which gained eight cents, or 2.4 per cent, to €3.48.

In the exploration sector, shares in Kenmare Resources closed one cent, or 2.6 per cent, lower at €0.38 as more than one million shares changed hands.