The Irish stock market closed marginally lower, shrugging off a weak performance from Bank of Ireland shares and a drop in global stock markets after the US open.
However, traders said sentiment remained very nervous with investors remaining safely on the sidelines.
"Everyone agrees the market looks cheap but they are scared to buy in case it is even cheaper tomorrow," one dealer said, noting that fears over Iraq, the US economy and the solvency issues facing the European bank sector were still hanging over markets.
Bank of Ireland again proved the main feature of the day, closing 37 cents, or nearly 4 per cent lower, at €9 as more than seven million shares changed hands in Dublin.
"A lot of investors don't like the deal with Abbey National and are voting with their feet," one dealer said. The shares were also hit by hedge fund activity and the general market downturn, he said.
Other Irish banking stocks fared better, with AIB closing up five cents at €12.30 and Anglo Irish Bank gaining 17 cents to €6.17 but Irish Life & Permanent ended weaker, losing 13 cents to €11.
Elsewhere, CRH added 27 cents, or more than 2 per cent, to €11.49 amid demand following its recent sharp fall. The company said one of its directors, Mr Kieran McGowan, spent €22,7000 buying 2,000 shares yesterday at €11.35 a share.
Greencore lost 15 cents to €2.55, Ryanair was up three cents at €5.42 while Independent News & Media closed one cent up at €1.39.
Among the smaller stocks, a bigger-than-usual 2.5 million Barlo shares were traded as the stock shed six cents to €0.10.
