Heavy losses by European telecom and technology stocks and early losses on the Nasdaq market in New York left the Irish market sharply lower. And while technology shares were hit by a wave of profit-taking, the so-called "value" shares also took a pounding with losses across the board.

Bank of Ireland tumbled to a new three-year low with a 34 cent fall to €5.68. It is looking distinctly friendless despite what would seem, on paper at least, a remarkably low valuation. AIB was also lower, falling five cents to €8.55. Overseas fears about the Irish economy, rising interest rates and fears that both banks have been too slow to embrace Internet banking have meant that even at these valuations, the Irish banks have few supporters and further losses cannot be ruled out.

There is simply no sign yet of them reaching bottom, although shareholders in AIB have the opportunity of taking a punt on the shares rising by taking their final dividend of 21.85 cents in the form of shares issued at €8.60.

Ryanair was one of the few large-cap shares to rise, jumping 41 cents to €9.61 despite the dilutionary effect of the share placing. Eircom bucked the downward trend in the telecoms sector and was well-supported at its closing price of €4.76, a one cent rise on the day.

Technology shares took an early pounding but most managed to rebound from even lower levels. Although Baltimore closed down £12.50 on £125 sterling in London, the shares recovered from a steep early dive on Nasdaq. After plunging to $188.75 in the opening session, Baltimore recovered to trade around $207 at midday, down $12 on the overnight level.