MARKET REPORT: The stock market edged higher yesterday but a lack of newsflow and direction from overseas markets meant trading volumes remained very light.

Dealers noted that less than a million AIB shares dealt in Dublin, as the stock dropped four cents to 12.38. Bank of Ireland enjoyed healthier volumes of more than two million shares as it added three cents to 10.48 but the bank's buyback programme may have helped bolster activity in the stock.

On Friday, Bank of Ireland bought 110,000 of its shares at a price of 10.45 per share. Analysts estimate that since it published its full-year results at the end of May, the bank has spent 180 million repurchasing 17 million shares at an average price of 10.58 each.

Irish Life & Permanent gained 19 cents to €9.75 but rival mortgage provider First Active lost 12 cents to 4.78 following reports that it may face a 100 million lawsuit.

Among industrial stocks, CRH added five cents to €15.60 as a positive note from Merrion Stockbrokers rated the stock as a buy at 15.55.

"A recovery to near the average ratings afforded the shares over the past 14 years is a realistic prospect and would suggest a possible further 15 to 20 per cent upside from here over the next six to 12 months," the broker said.

Other movers on the day included DCC, which added 35 cents to 10.65, and Elan, which was up 18 cents to 4.33 as it continues to work toward filing its 2002 accounts.

Galen also made up some ground, adding 15 cents to €8.40. More than a million Greencore shares were traded as the stock lost seven cents to 2.75.