Dublin report: The biggest news in the Irish market happened after trading had closed yesterday, with Ryanair confirming it had bought another 4 per cent of Aer Lingus, bringing its holding in the rival airline to 29.4 per cent.

While such an announcement had been expected following heavy trading in Aer Lingus shares last week, the total holding revealed yesterday was higher than anticipated.

Aer Lingus volumes were decent yesterday too, with more than 6.5 million shares changing hands, leading sources to speculate that Ryanair had been back in the market buying yet more shares. It is unclear though whether they are in addition to, or included in, yesterday's announcement.

Ryanair shares closed up 1.9 per cent, or nine cent, at €5.02, while Aer Lingus added 1.2 per cent, or three cent, to end the day at €2.45. Dealers said Aer Lingus was also boosted by news that the planned strike by pilots at the airline had been called off.

Elsewhere activity in the market was quiet, with dealers saying that at last the Iseq index had recorded a more typical August day. Trading usually slows down at this time of year as many investors are on holiday, but the volatile trading of the past few weeks has meant that many have stayed at home.

The Iseq closed up 0.5 per cent after rising 1.8 per cent earlier in the day.

The financials were all gainers, though volumes were light. Bank of Ireland put in the best showing, rising 1.6 per cent, or 21 cent, to €13.30, while Anglo-Irish added 1.3 per cent, or 17 cent, to close at €13.98. AIB rose 0.7 per cent, or 13 cent, to €18.78.

Irish Continental Group meanwhile fell 3.3 per cent, or 84 cent, to €24.16 after the independent directors recommended a €24-a-share offer from Aella.

Settlement day: August 23rd