Market report: The Irish stock market kicked off the year on a strong footing, closing 1.7 per cent higher as it outperformed the leading international markets.

The ISEQ, which notched up a 26 per cent gain last year, added more than 100 points to break through the 6,300 level with most of the major stocks gaining ground.

Leading the charge was Elan, which gained close to 6 per cent in Dublin as the Irish share price caught up with developments in the US over recent days. Lifted by news of FDA approval for the company's chronic pain drug, Prialt, and predictions from US hedge fund manager Mr Larry Feinberg that the share price could double this year thanks to its multiple sclerosis drug, Tysabri, the stock added €1.15 to €20.75.

However, in New York, where the shares have already gained nearly 7 per cent since Christmas, the stock gave up some ground.

Dealers reported strong demand for Ryanair which closed 18 cents, or 3.4 per cent, higher at €5.43 as more than four million shares changed hands.

CRH, which releases a trading and acquisition update today, moved ahead, closing 40 cents or 2 per cent higher at €20.10.

With the exception of Anglo Irish Bank, financial shares turned in a more muted performance. AIB added just one cent to €15.36, Bank of Ireland was up eight cents on the day to €12.33 but Anglo enjoyed strong gains, adding 36 cents or 2 per cent of its value to €18.26.

Other movers yesterday included Independent News & Media, which added six cents or 2.6 per cent to €2.38 amid growing optimism about the outlook for the media sector.

United Drug also performed well, adding 12 cents or 3.5 per cent to €3.60.

Kingspan shares gained 10 cents to €7.15 as the market welcomed news it had received $36 million as part of a settlement agreed with the sellers of Tate, the US business it bought for $120 million four years ago.

Settlement Day: January 7th