Dublin report:Irish stocks took another drubbing yesterday as investors remained cautious about the economy. The Iseq closed more than 176 points down at 7,608.64, a fall of 2.27 per cent, more than twice the percentage loss suffered in London, writes  Barry O'Halloran.

A defiant Bank of Ireland trading statement predicting low double-digit growth and saying it that it would meet earnings targets was not enough to fully insulate it from the rout. Although the stock gained four cents to reach €11.90 in early trading, the bank fell victim to poor sentiment towards financial stocks and closed six cents down at €11.80.

AIB and Anglo Irish Bank also suffered, the latter losing 4.35 per cent, dropping 55 cents to €12.10. Dealers said investors had a perception that Anglo was exposed to wholesale borrowing markets, although its lending is 60 per cent supported by deposits.

AIB fell 46.2 cents to €16.138.

Results from house builder McInerney showed that first-half profits fell 5.6 per cent to €9.2 million. It lost 39 cents to close at €1.43, a fall of 21.43 per cent, the biggest proportionate loss of the day.

Investors sold about a million shares in the company. Concerns about the Republic's building industry also hit Grafton, which lost 46 cents to close at €8.01.

Citigroup initiated coverage of Independent News & Media with a sell recommendation based on possible future obstacles to growth, with tougher trading conditions in Australia and New Zealand and a potential fall in ad revenue here. The stock lost almost 5 per cent, shedding 14.9 cents to close at €2.87.

Food group Greencore issued a trading statement predicting that earnings growth would beat market expectations this year. However, shares still closed 12 cents down at €4.62.