MARKET REPORT:THE DUBLIN market endured another day of turmoil as the Iseq index of Irish shares plunged by more than 5 per cent at one stage, writes Ciarán Brennan.

A $9 fall in the price of oil in the afternoon offered some respite to the market as Ryanair bounced substantially, closing the day nearly 4 per cent stronger at €2.75.

Nevertheless, the market still finished some 3.2 per cent weaker, at it shed 144.49 points to 4,354.62.

Yet again, the Iseq took its lead from what was happening elsewhere. With US financial stocks weak from overnight trading, Irish bank stocks were under pressure from the outset and weren't helped as investment bank Credit Suisse said the financial crisis would reduce lending further and accelerate the decline in house prices.

Credit Suisse reduced its share price forecast on AIB to €9.50 from €15 and cut Anglo's price estimate to €6 from €11.35.

Swiss bank UBS reduced Bank of Ireland's price estimate to €5 from €9 and cut its 2009 and 2010 earnings estimates by up to 29 per cent, saying the outlook for the Irish economy was "deteriorating".

By midday AIB's shares had plunged by more than 10 per cent before a minor recovery saw it end the day 6.58 per cent weaker at €7.10. Irish Life Permanent was hardest hit among the financials, falling nearly 13 per cent to €4.07 by end of business.

Despite starting strongly on the news that the Quinn family had swapped their short-term CFD holdings in the bank for a 15 per cent ordinary share stake, Anglo Irish Bank soon got sucked into the maelstrom of the bank sell-off. It ended 6.53 per cent weaker, losing 28.5 cents to €4.08.

Bank of Ireland also saw more than 6 per cent wiped off the value of its shares by the close of business as it dropped 30 cent to €4.52.

Iseq: 4,354.62 (-144.49) Settlement date: July 18th