Weak financial stocks drove the ISEQ down some 1.6 per cent yesterday wiping more than £1 billion (€1.27 billion) off the value of the Irish market.

Lower than expected annual figures from Bank of Ireland showing a 10 per cent rise in pre-tax profit did not impress the market as the stock shed 9.2 per cent of its value to finish down 72 cents at €7.10.

However, one analyst said the "results weren't that bad" and there was "some sympathy" for banking stocks.

AIB recovered after heavy losses in the morning to close down 18 cents at €10.60, 60 cents off its high for 2000.

Irish Life & Permanent followed the downward trend shedding 22 cents to finish at €9.48, while Anglo Irish Bank remained virtually unchanged up just one cent at €2.65. Market analysts said merger speculation was behind the 19.51 per cent surge in First Active shares, which saw it buck the downward trend in financial stocks. The stock rebounded from months of stagnation to finish up 40 cents at €2.45 ahead of next week's eagerly awaited annual meeting.

Of the smaller stocks, Ryan Hotels continued its current good run adding six cents to €1.05 to finish at its annual high. This should please the board which complained about the company's low valuation at its recent a.g.m.

Greencore added 10 cents to finish at €3, while Green Property lost eight cents at €5.42.

There is still no sign of an upturn for Eircom, which slipped one cent to €3.74 and is still languishing 16 cents below its flotation price.