Bank of Scotland news sets First Active shares alight

MARKET REPORT: The market was dominated from the open by news of Royal Bank of Scotland's move on First Active, which came as a surprise to many in the market.

The news instantly set First Active's share price alight, with a high of 6.22 reached before the stock eventually closed 1.48 higher at 6.13 on massive volume. Close to 12 million shares were traded in Dublin, while 2.1 million changed hands in London.

The other financials had a less dramatic day, with Bank of Ireland moving up five cents to 10.35 on volume of 2.9 million shares and AIB dropping 21 cents to 12.39 as investors considered the new face of the Irish banking market.

Anglo Irish, which is viewed as another potential takeover target, rose 19 cents to 9.65, while Irish Life & Permanent closed 10 cents stronger at €11.30.

Grafton was the other main mover on the day, with news of two new acquisitions lifting the company's shares by 23 cents to €5.10. Sectoral bedfellow Heiton climbed eight cents to €3.40.

CRH closed six cents stronger at 15.58 on volume of less than one million shares. Ryanair fell four cents to 5.96 as the market continues to await the European Commission's decision on Charleroi.

In smaller stocks, Dragon Oil closed two cents higher at 48 cents on volume of one million shares. It has been suggested that the firm is an acquisition target for a Chinese exploration company.

Elan moved 23 cents higher to 4.88 in advance of its a.g.m. later this month. Iona Technologies shed 25 cents to close at 2.40. The stock exchange meanwhile said it was admitting Fyffes, Glanbia and Jurys Doyle to its small-cap index after a biannual review.