Shares on the Dublin market lost more ground yesterday reflecting weakness in exchanges in the US, Britain and Europe. With much of yesterday's corporate news concerning smaller stocks, the ISEQ index declined by 0.44 per cent. Financials suffered most, finishing 1.28 per cent lower at the end of trading.

Nevertheless, long-suffering mortgage lender First Active added 10 cents to close at €1.85 after the appointment of Mr Cormac McCarthy as chief executive. A trader said institutional investors were impressed with Mr McCarthy's credentials, though there was a feeling that the appointment - delayed by a proposed merger with Anglo Irish Bank - could have come sooner. Anglo Irish finished eight cents higher at €2.33, but there was little optimism for the larger financial stocks.

Bank of Ireland, which revealed plans to purchase a British-based financial advice firm, Chase de Vere Investments, lost more than 1 per cent to close at €6.52, down eight cents. And AIB, which reports half-year results next week, was down 2 per cent on the day, finishing 18 cents weaker at €8.82. At €7.75, Irish Life & Permanent was 10 cents weaker at the close.

General stocks lost 0.15 per cent on the day.

Shares in DCC, the distribution and marketing group, fell by 10 cents to close at €9.50. The group, which had surplus cash on its balance sheet, paid €24.3 million to buy back 2.9 per cent of its issued capital.

Shares in property company Dunloe Ewart rose five cents to close at €0.39 after its chairman, Mr Noel Smyth, upped his offer to shareholders to take the company private by four cents, to 51 cents per share.

Of the larger industrials, market leader Elan gained 70 cents to close at €54.60, reflecting strength in the pharmaceutical sector in the US particularly. Building materials company CRH finished eight cents weaker at €18.50. Ferry company Irish Continental, whose half-year results were worse than expected, lost €1 to close at €7.75.