The market was one of the worst performers in Europe yesterday, dragged down by big drops in the prices of a number of major stocks. It closed the day nearly 3 per cent weaker at 6,120.55.

Financials were under pressure reflecting a general caution from Saloman's on banks across Europe in the event of a downturn. In the UK, banks were off 3 per cent, while in the rest of Europe they were down 2.5 per cent.

Bank of Ireland dropped 40 cents to #11.30 on a volume of more than 700,000 shares, while AIB was down 26 cents to #12.70 with more than 630,000 shares changing hands. Also falling back were Irish Life & Permanent which lost 20 cents to #13.20 and Anglo Irish Bank which closed at #4.50, down 12 cents on the day.

Despite good results in line with expectations, a subsequent revenue and earnings warning by Iona led to a massive slump in its share price. It lost #7.50 to close the day at #25.00.

Pharmaceuticals group Elan also continued its downward trend, dropping back #3.75 to #64.75 as lack of news on two drugs awaiting approval continued to disappoint.

CRH gave up some of the gains of recent days and was trading down in line with the general European construction sector which was more than 2 per cent weaker. It lost 47 cents to close at #19.55. Smurfit also found itself under pressure, eventually drifting 4 cents lower to #2.26 on strong volumes of more than five million shares.

Power Leisure rebounded, picking up 20 cents to #3.90, while Icon rose 50 cents to #42.00 and IAWS was 25 cents stronger at #8.00.