Iseq: 4,333.53 (-211.14) Settlement date: August 22ndRENEWED FEARS over the health of global banks and fresh concerns over credit quality hit Irish banking stocks hard yesterday, helping to push the Dublin market down by 4.65 per cent, as 211.14 points were knocked of the index to close at 4,333.53.

Fears that the US government may have to step in to support mortgage companies Freddie Mac and Fannie Mae led to a sell-off of banking stocks across Europe yesterday and in Ireland, bank stocks were down by around 4.5 per cent on decent volumes by the close.

Irish Life & Permanent was the hardest hit, as 45 cent was knocked off the value of its shares to leave it at €5.50. Bank of Ireland also saw is shares plummet more than 7 per cent to close the day at €5.46.

AIB was 5.25 per cent weaker as it shed 45 cent to €8.13, while Anglo Irish Bank lost 28 cent to €5.72, a drop of just under 5 per cent.

Despite decent enough volumes yesterday, a lack of liquidity hit some some stocks hard. FBD's share price plummeted by more than 15 per cent, or €2.50, to €14, although only around 22,000 shares were traded.

European construction stocks also took a hammering after Austrian company Wienerberger cut its profit outlook and on the back of weak US housing data.

Nearly 7 per cent was wiped off the value of CRH's share price as it slumped by €1.27 to €17.01 although volumes were weak. Grafton's shares were down 7.67 per cent as it lost 32 cent to €3.05, while Kingspan shed 26 cent to €6.56.

Despite saying it was on track to deliver full year earnings per share within the range currently expected by analysts, Greencore fell 8.7 per cent to €2.10 as concerns about the effects of sterling and deteriorating consumer sentiment on its UK operations put the stock under pressure.