Irish shares closed slightly lower as the leading stocks turned in a mixed performance. Dragged down by AIB, financial stocks fared worst, ending in negative territory, whereas the general index managed to close marginally higher.

AIB, which confirmed that it had submitted an indicative bid to purchase Ulster Bank, lost 50 cents to €12 (£9.45), although dealers said much of this was a reflection of late weakness in London on Wednesday.

Bank of Ireland, by comparison, closed seven cents higher at €7.95 (£6.26) while Irish Life & Permanent gained 10 cents to end at the sterling equivalent of €9.65 (£7.60). Dealers said there were signs that volumes were dropping off in the run-up to Christmas. "It's been pretty anaemic," one trader said, noting that thin volumes could lead to greater volatility in the days ahead.

Among industrial shares, CRH staged a recovery after the drubbing it has taken in recent days to close 52 cents higher at €18.52 (£14.59). Smurfit firmed by 10 cents to the sterling equivalent €2.78 (£2.19) ahead of paper industry figures due out in the US later today.

Dealers said corporate news was light enough, with full-year results from Athlone Extrusions one of the few news events. The Westmeath-based plastics manufacturer said operating profits for the full year matched those of last year at €5.5 million (£4.3 million), as the group recovered in the second half after difficult trading conditions in some of its key British markets in the early part of the year. But the shares closed two cents lower at €1 (79p) amid profit-taking after rising sharply ahead of the results.

Several of the Nasdaq-quoted technology stars were lower by the close of business in Dublin. Baltimore was down $2.25 at $61, Esat lost $2.5 to $80.375 while Trintech was $2.375 lower at $55.125.