The Irish market consolidated Monday's gains, rising 0.75 per cent to 5,048.09 adding 37.65 on the day's trade.

The biggest mover was Independent News & Media which ended the day at its highest ever level on €7.25, after rising by 95 cents or 15 per cent. This came on foot of the news that Dr Tony O'Reilly would take a more active role in running the company when he becomes executive chairman on May 1st.

The main business news yesterday - British Telecom's bid for Esat - focused attention on Eircom's performance. Although the BT bid removed one potential buyer for the state company and is likely to increase competition in the domestic market Eircom finished at €4.10, up 10 cents or 2.5 per cent on the day.

One analyst said while some factors surrounding the BT bid could be perceived as negative for the state's largest telecoms company, the whole saga had led to greater interest in the sector pushing the price higher.

By contrast, financial stocks had a poor day as the two largest banks lost ground, falling nearly two per cent in trading. Bank of Ireland finished down 14 cents at €7.61 while AIB finished 20 cents lower at €11.00. However, Irish Life & Permanent ended the day at €10.15, a rise of 15 cents, after briefly touching €10.35 in earlier trading.

There was strong demand for some second line stocks with one analyst describing it as "an interesting day" on the exchange.

Good numbers posted by the Jurys Doyle hotel group helped push the stock up by 55 cents or 7.6 per cent to €7.75 by the end of trading.

Heavy trading in Smurfit shares helped it finish up 15 cents at €3.35 while Kerry rose 10 cents to €12.05. But Elan lost ground, falling to €28.70 from €28.738.