The Eircom factor and the heavy selling on overseas markets were the main factors behind the Irish market closing at its lowest level since the end of February. And with the Eircom share remaining under pressure and international markets concerned over interest rates, the short-term prognosis for the domestic market is not good.

Eircom itself fell to an intra-day all-time low of €3.30 before recovering in volatile afternoon trading to close down 25 cents on an all-time closing low of €3.47. Elsewhere, financial shares were hit by interest rate fears, with AIB off 30 cents on €10.20, Bank of Ireland down six cents on €6.84, while Irish Life & Permanent lost 40 cents to €9.30.

The news of the collapse of the Anglo Irish/First Active merger came too late to have any impact with neither share trading after the late afternoon announcement. First Active was three cents lower on €2.17 and may come under pressure today, while Anglo Irish - up two cents on €2.42 - may also endure some selling pressure on concerns over the group's strategy.

There was also heavy pressure on technology shares with Horizon falling 75 cents to €8.60, while ITG lost 40 cents to €12.10. The main feature on overseas markets was the continued slump by Baltimore which fell 51p to £3.68 sterling - partly due to the steady selling of TMT shares and partly due to the continued hangover from the big share sales last week by Henry Beker and Fran Rooney.

Trintech fell €1.45 on the Neuer Markt to €24.95 while Parthus was hit by profit-taking in London after it hit an early high of £1.63. Later selling saw the shares close down 7p on £1.47 but they were still well above the 85p flotation price.