MARKET REPORT: Irish shares closed 1.5 per cent lower, hit by continued weakness in global financial markets. However, volumes were relatively light as many investors fled to the sidelines in the face of ongoing uncertainty.

Settlement Date: September 18th

"The lack of liquidity is increasing volatility," one dealer said, as a number of secondliners took a particular battering.

Dealers said Independent News & Media hit an all-time low of €1.35 ahead of half-year results on Monday. The stock, which closed 10 cents lower at €1.40, was not helped by further confirmation from Fairfax of the sluggish outlook for advertising in Australia.

"The expected recovery in the second half is not forthcoming," one dealer said.

Meanwhile, Riverdeep also suffered, dropping by 19 cents to €2.00, while Waterford Wedgwood remained under pressure, finishing down two cents at €0.45.

The leaders were not immune to the weakness with Ryanair off 10 cents at €5.50, while AIB dropped by 19 cents to €12.47 and Bank of Ireland closed 32 cents lower at €10.88.

However, CRH held steady at €14.65 as analysts dismissed speculation that it would enter a bidding contest for Spanish building materials group Uralita.

Food stocks, a defensive sector, also held up well with Glanbia gaining a further five cents to €1.65 with more than a million shares traded, while Greencore added nine cents to €3.04.

Dunloe continued to inch up, gaining two cents to €0.37 with 1.2 million shares dealt, while Tullow added one cent to €1.67 as Fidelity upped its stake to 6.04 per cent from 5.89 per cent.