Dublin Report: Elan was the main feature on a dull Irish stock market as shares in the drugmaker surged by 8 per cent in early trade following merger speculation in the weekend press.

However, the shares later gave up ground after the company denied it was in merger talks with its drug development partner, Biogen Idec. In Dublin, they closed 95 cents, or 5.6 per cent higher on the day, at €17.95.

Otherwise, the Irish market had a quiet day, closing just marginally higher as investors kept a wary eye on the third quarter reporting season and other developments.

"There is very little appetite among investors. They are watching the dollar and watching the oil price," one dealer said.

Volume in most of the leading stocks was light as many of them slipped lower. AIB shed four cents to €13.71, Bank of Ireland was down 18 cents to €10.74 following weak house price data in the UK while CRH gave up three cent to €18.72.

Despite the continued strength of the oil price, Ryanair shares were unchanged at €3.72.

Among secondline stocks, FBD stood out as 2.57 million shares in the company, or nearly 6 per cent of the total, were sold by Farmer Business Developments, the investment holding company which retains a 31 per cent interest in the insurance group. FBD shares finished at €18.45 last night, down just five cents on the day.

Shares in Independent News & Media were also active yesterday with nearly 3.7 million shares changing hands. Stock in the company, which reported good circulation figures for its UK broadsheet titles late last week, closed one cent lower at €2.19.

Other movers yesterday included C&C, which continued to make gains in the wake of its recent interim results. The shares closed a further six cents, or 2.4 per cent higher, at €2.56.

In the exploration sector, Dragon Oil lost two cents to €0.78 as it announced the appointment of Mr Essa Almulla as its new chief executive.