The Irish market plunged to its lowest level of the year with almost 2 per cent wiped off the ISEQ as bearish sentiment continued to dominate the market.

There is an almost total absence of buyers of Irish stocks at present and, despite being over 8 per cent below its end-1998 level, there is

still no sign of bargain-hunters looking to pick up bargains from the current bout of weakness. Institutional investors believe the front-line stocks - the only ones they have any real interest in - are set to fall further and can be picked up at lower prices in the days and weeks ahead.

Needless to say, the continued weakness of Eircom was one of the main factors behind the fall in the ISEQ and the share fell another six cents to €3.80 (£2.99). That means that investors are sitting on a loss of 10 cents on every Eircom share they bought last July.

Bank of Ireland shares had a dismal day and even another phase of its 5 per cent buy-back failed to stop it falling back 35

cents to €7.80 (£6.14). The bank bought back almost 4.7 million shares through Davy at €8.15, a move that failed to stem the fall in the price. AIB, which completed the Bank Zachodni acquisition in Poland, was 30 cents weaker on €10.95 (£8.62) - its lowest level this year.

The sell-off in the British building materials sector since the hike in interest rates last week - the sector is now off 12 per cent - continued to plague CRH which lost another 34 cents to €18.96 (£14.93).

Second-liners to go weaker included: Greencore, down 20 cents to €2.75 (£2.17); First Active, off five cents to €2.75 (£2.17); and Irish Continental - down 50 cents to €10.50 (£8.27).