Shares on the Dublin market rose by 2.69 per cent yesterday in thin trading marked by a strong rise in the value of index leader Elan, which reached a new high. Financials rose also in anticipation of first-half results from AIB today.

Elan's 7.47 per cent increase to €59.43 from €55.30 followed gains on the New York exchange on Monday and the European Commission's decision to grant marketing authorisation for a new product, Myocet, for the treatment of breast cancer.

Financial stocks finished 1.69 per cent stronger on average ahead of AIB's interims with sentiment boosted by results published in Britain by Royal Bank of Scotland, which were ahead of expectations. Ulster Bank - subsumed by Royal Bank in its acquisition of NatWest - reported a 21 per cent rise in pre-tax profits to €156 million in the first half of the year.

AIB closed 0.57 per cent higher at €8.85 though it had traded at €9.00 in earlier trading. Bank of Ireland added 2.71 per cent to finish at €6.81 after trading 3.32 per cent higher than its previous close in earlier business. Irish Life & Permanent finished 3.64 per cent higher at €7.98.

Of the industrials, CRH added 1.1 per cent in a 20 cent rise to €18.45 and Ryanair gained 1.11 per cent to close at €9.10. Eircom lifted five cents from its record low on Monday to close at €2.60 though the stock is still far off its flotation rate of €3.90. While US giant IBM took a 14 per cent stake in Riverdeep, the Irish company's stock was unchanged at €3.50 by the end of trading in Dublin. On the Nasdaq, at lunchtime in New York, the share was trading at $19, up 1.33 per cent on its previous close.