Market Report: Irish shares closed nearly 1 per cent lower yesterday as a weaker tone crept into the market.

Dealers said volumes were relatively light, as the recent uncertainty over the taxation of contracts for difference (CFDs) kept some traders out of the market, and sentiment among those prepared to deal was negative.

Bank of Ireland was one of the harder hit stocks, losing 35 cent or nearly 2.3 per cent, to €15.10 despite releasing an upbeat trading statement. However, trade in the shares was relatively thin with just over 1.5 million shares changing hands.

Other financial stocks also gave up ground with AIB losing 13 cent to €19.45, Irish Life & Permanent off 30 cent to €19.50 and Anglo Irish Bank shedding four cent to €13.23.

Dealers said the bearish sentiment also hit stocks in the construction sector as CRH dropped by 30 cent, or 1 per cent, to €27.90. Grafton lost five cent to €10.80 while Kingspan also finished five cent lower at €12.70.

Negative broker sentiment in the US toward Ryanair sent the shares down by 20 cent, or 2.5 per cent, to €7.65 despite the launch of six new routes from its base in Pisa.

Eircom continued to lose ground, as uncertainty about a bid from Babcock & Brown persisted in the market. The shares closed three cent, or 1.4 per cent, lower at €2.13.

DCC, which announced the appointment of Tommy Breen as its new chief operating officer, finished five cent lower at €19.20.

One of the few gainers was drinks and snacks group C&C, which rebounded after recent selling by funds like Fidelity and Schroder. It closed 10 cent, or 1.8 per cent, higher at €5.55.

Tullow and Datalex were unchanged at €5.05 and €0.84 respectively while Getmobile lost one cent to €0.39 ahead of the release of results today.

Dealers reported good interest in the Iseq Exchange Traded Fund (ETF) among those interested in trading the index. It closed the day 31 cent, or 1.9 per cent, lower at €15.80.