The Irish stock market closed up just half a percentage point in contrast to strong performances by overseas markets where battered technology and telecom stocks rallied.

Irish shares enjoyed a mixed sort of a day, despite a strong opening on US markets, where the Nasdaq rose by more than 3 per cent, and strong closes on most leading European markets.

"We haven't joined in the rally to date," one trader said. "We had a good rise earlier in the week when the banks recovered a lot of ground after their fall on the Gateway news."

Both of the two leading banks closed marginally lower on the day, with AIB down one cent at €12.41 while Bank of Ireland lost 10 cents to €10.90.

Another stock that lost ground was leading industrial CRH, which closed 12 cents lower at €19.93.

However, the overall ISEQ was buoyed by a good performance from pharmaceuticals group Elan, which accounts for around one-quarter of the index. It gained €1.75 to close at €60.50.

Other gainers on the day included Smurfit, up three cents at €2.40, and Ryanair, which gained 11 cents to €11.26.

Irish technology stocks were slow to respond to the gains on the Nasdaq with most closing lower. Riverdeep lost 39 cents to €4.06, ITG shed 15 cents to €5.10, although Iona bucked the general trend, gaining 90 cents to €16.90.

In London, mobile phone giant Vodafone rose 3.1 per cent to 134 pence sterling as it found support from Hutchison Whampoa's denial of a report that it was keen to sell its 3.47 per cent share in the company.