Iseq:3,003.06 (-12.48) Settlement date:July 8th

BANK OF IRELAND proved the weakest link in the Iseq index yesterday, plunging more than 10 per cent under sustained selling pressure.

There was no stock-specific news to spark the sell-off in Bank of Ireland, but according to a Dublin broker it was hit hard as there was “no institutional buying” to support it at the moment. The stock finished near its daily low at 11 cent, having traded on decent volume.

In the food sector Aryzta slipped after Dutch bakery group CSM issued a profit warning which highlighted the cost pressures in the industry. Though Aryzta’s business does not overlap directly with that of CSM, it shed about half a per cent on the Irish market to finish just below €37.50. On the Swiss stock exchange, where most of the company’s shares are traded, it tumbled 2 per cent.

Exploration company Dragon Oil continued to benefit from recent takeover speculation, though there were no fresh rumours circulating on the market yesterday. Shares in the company had soared on Monday after reports surfaced that a Chinese company was preparing to make a bid for Dragon Oil. Yesterday the stock gained almost 2 per cent, or about 12 cent, to end just below €6.18. On the London market it was about 1.5 per cent ahead at 558.5p.

Despite the gain a broker noted that it had pulled back from the intra-day highs recorded in the previous session.

Elsewhere in the sector, Tullow Oil surged nearly 4 per cent to 1301p in London as investors reacted well to the company’s positive first-quarter trading update.

Building materials stock CRH finished about 1.5 per cent – 22.5 cent – lower at €15.01.

Overall the Irish market just about managed to stay above the 3,000 mark, but was still down 0.4 per cent on the day.