Dublin report: The Irish market drifted lower yesterday, led by lacklustre performances from the main financial stocks. Elsewhere in Europe, the Iseq's counterparts also fell after a further decline in the price of oil pushed mining stocks lower.

Dealers reported light volumes and a general lack of interest across the board, citing a lack of homegrown news.

Bank of Ireland ended the day down 22 cent, or 1.4 per cent, at €15.23, while Allied Irish dropped 26 cent, or 1.2 per cent, to close at €20.48. Anglo meanwhile fared slightly better, dropping only eight cent, or 0.6 per cent, to €12.96.

Paddy Power was down 20 cent, or 1.4 per cent, at €14.35 as the stock continued to feel the effects of US legislation banning online gambling in what for many of the Irish group's rivals is a big market. Paddy Power itself doesn't operate in the US, but some commentators fear the ruling may increase competition in the European market.

Elsewhere, Aer Lingus's performance on its second day of official trading was nothing to write home about. The stock slipped three cent, or 1.2 per cent, to close at €2.41 despite the price of oil falling to its lowest level for seven months.

In a statement to the stock exchange, the company said an additional 44 million new shares will be released into the market under the terms of the over-allotment arrangements outlined in its September prospectus.

Ryanair meanwhile slipped slightly, closing down one cent, or 0.1 per cent, at €8.39.

An announcement by Irish Continental that P&O had extended an agreement to charter one of the Irish group's vessels until 2010 left its shares unchanged at €11.

Dragon Oil meanwhile added three cent, or 1.4 per cent, to €2.20. Earlier this week the group gave a positive drilling update.