MARKET REPORT: Shares closed modestly higher but volumes were light with just a handful of stocks trading in any size, write Jane O'Sullivan, Markets Correspondent

Settlement Date: December 13th

Independent News & Media was among the more active stocks, with more than three million shares traded, as the share price added two cents to €1.37. Dealers said signs of a pick-up in the advertising environment in Australia and New Zealand were lending some support to the shares.

Both of the main banks gained ground although volumes were relatively thin. AIB added 35 cents to €13.10 while Bank of Ireland was up 23 cents to €10.24, but Irish Life & Permanent dropped by 30 cents to €10.90 after Davy said the company, along with First Active, would be hit hardest by the levy on the financial sector introduced in last week's Budget.

CRH remained weak, shedding 30 cents to €13.20. Dealers said that, with the exception of Grafton, building stocks were feeling the effects of the predicted slowdown in construction activity next year. Although Grafton added 12 cents to €3.59, rival builders merchanting group Heiton was down 15 cents at €2.15 and Kingspan shed 10 cents to €1.75.

Despite announcing the sale of the remains of its diagnostics division, Elan shares gave up 15 cents to €2.80 while Galen lost six cents to €8.25 in the wake of Monday's 8 per cent gain.

Among the stocks deemed to be in an offer period, Arnotts gained 15 cents to €11.50 in the wake of a report suggesting the average family would spend nearly €1,400 this Christmas.

Alphyra was up by three cents to €2.23, Riverdeep dropped by two cents to €1.38, while Conduit was unchanged in Frankfurt at €2.65.