The stock market closed more than 30 points higher yesterday, bucking the downward trend in international stock markets.

Galen was the star performer on the day, gaining €1.49 cents, or 16 per cent, to €10.59, after the Northern Irish drugmaker said it was in preliminary discussions that could lead to an offer for the company. US-based Barr Laboratories was named as the likely bidder although it declined to confirm this last night.

Glanbia also attracted attention after the board of the co-op, which controls nearly 55 per cent of the company, rejected a suggestion from some of the group's milk producers that it be taken private. Although the producers said their proposal did not constitute a bid, nor did they intend to make one, the shares added nine cents to 1.88.

Meanwhile, after a weak start, the two main banking stocks moved ahead in the afternoon and finished higher. AIB gained 20 cents to 12.70 while Bank of Ireland added 10 cents to 10.20, again confirming it had been in the market to buy 600,000 shares at 10.21 apiece on Wednesday.

However, Anglo Irish Bank and Irish Life & Permanent both fell victim to profit-taking, closing seven cents lower at 8.10 and 16 cents lower at €9.64 respectively.

CRH also gave up some of its recent gains, finishing 12 cents weaker at 15.48, while Ryanair lost two cents to 6.07.

Abbey, which posted better-than-expected results, shed five cents to 5.45 as dealers reported profit-taking after a strong run-up ahead of the figures.

Tullow lost three cents to 1.13 despite announcing a UK acquisition, while more than a million IWP shares traded though it closed unchanged at €0.22.

Meanwhile, the National Treasury Management Agency (NTMA) said its auction of 600 million of bonds due 2009 was covered three times.