Profit-taking brought the Irish market's New Year gallop to a sharp halt yesterday with the market falling 2 per cent. But dealers said that with the market still up 5 per cent on the turn of the year, share prices are well supported and further gains, punctuated by periodic bouts of profit-taking, are likely.

Given that the banks were the biggest risers this week, it was no surprise that they suffered most from the profit-taking. Bank of Ireland dropped 1.15 to close on 19.85 (£15.63), while AIB was 40 cents lower on 17.00 (£13.39). Anglo Irish Bank also fell - down 11 cents to 2.60 (£2.05). First Active, however, continued its steady rise and closed up 10 cents on 5.00 (£3.94).

Merger partners Irish Life and Irish Permanent went in opposite directions, with Irish Life up 15 cents on 8.90 (£7.01), while Irish Permanent eased 5 cents to 13.95 (£10.99).

Among the industrials, Smurfit lost some of its recent gains and was down 5 cents on 1.75 (£1.38), while CRH drifted lower in line with the weakness in the London market and closed down 15 cents on 15.25 (£12.01). ITG was one of the few stocks to buck the downward trend and dealt up 10 cents to 4.95 (£3.90) - a new high.

Irish stocks on Nasdaq enjoyed mixed fortunes, but it came as no surprise that Esat suffered some sizeable trading after its recent surge, and the share was trading almost $1.62 lower on $45.38 (38.45) as the Irish market closed. Software stocks were generally firmer with CBT and Saville both marginally firmer in chunky trading.