MARKET REPORT:THE ISEQ index of Irish shares tumbled through the landmark 4,500 level yesterday, closing down nearly 6 per cent, or 271.81 points, at 4,414.80.

The meltdown, which saw around €3 billion wiped off the value of Irish shares, was sparked by concerns about the US banking sector. US stock markets opened sharply lower in afternoon trading as concerns grew over the financial health of Freddie Mac and Fannie Mae, two US firms which provide financing to the vast mortgage market.

That spooked investors in Europe and shares in Irish banks, which up until then had been holding their own, plummeted.

Among the financials, AIB was the biggest casualty with nearly 10.5 per cent wiped off the value of its shares. It eventually closed the day 86 cents weaker at €7.35.

Irish Life Permanent shares dropped by 8.9 per cent, or 42 cent, to €4.30, while Anglo Irish Bank was 8.7 per cent weaker at €4.428. Bank of Ireland lost nearly 5.9 per cent of its value as it shed 29 cent to €4.65.

But banks were not alone and most headline stocks suffered badly as a wave of selling engulfed the market.

Rising oil prices hit Ryanair and Aer Lingus hard. Aer Lingus closed the day down nearly 7.6 per cent at €1.22, while Ryanair's stock eventually closed the day more than 5 per cent weaker at €2.53.

Otherwise there was very little newsflow except an interim management statement from drinks company CC.

The company endured a miserable day after it revealed that its four months trading to June was down 8 per cent.

The stock traded down 20 per cent at one stage before eventually closing 11 per cent weaker at €2.42.

Food company Greencore had a day to forget as it slumped more than 19 per cent to €1.43.

Settlement Date: July 16th