Lingering uncertainty over the US government’s $700 billion bailout package for it troubled banking system hit global markets today, helping to push the Iseq Index of Irish shares down 41.41 points, or 1.08 per cent, to 3,784.77 despite a late rally in some stocks.
The Iseq is now down 20 per cent since the start of the month.
Bank stocks had a mixed day in some choppy trading with one broker saying that there seemed to be neither rhyme nor reason behind some of the share price moves.
Anglo Irish Bank endured a volatile day, with its shares trading down 8 per cent at one stage and up 8 per cent before finally settling at €4.276, a gain of 11.2 cent or 2.7 per cent. Volumes, however, were relatively light.
Bank of Ireland also closed the day in positive territory as it eased forward 1 cent to €4.10.
AIB's good run of the past few days came to an end and the stock gave up some of its recent gains as it shed 40 cent, a drop of 6.25 per cent, to €6. Irish Life & Permanent also lost out on the day as it fell 2.5 per cent, or 15 cent, to €5.75.
After a slow start to trading this morning, CRH again outperformed as it finished 11 cent better off at €16.95, despite its sector closing down on the day.
C&C was again under pressure, the stock trading down at the €1.91 level at one stage, before recovering slightly in the afternoon. Nevertheless, by the close of business it was still 4.76 per cent weaker at €2, a fall of 10 cent.
Despite oil prices falling back around $3, Ryanair failed to benefit and its stock hit lows of €2.39 during the day before eventually ending up just 2 cent weaker at €2.50.
European stocks fell for a fourth day this week after negotiations on the $700 billion financial bailout plan stalled and Washington Mutual was seized in the biggest US bank failure in history.
Royal Bank of Scotland Group, the UK's second-largest bank, slid 7.7 per cent and Dexia, the world's biggest lender to local governments, lost 7.9 per cent. Fortis tumbled 20 per cent.
National benchmark indices dropped in all 18 western European markets. The UK's FTSE 100 fell 1.8 per cent as shares of Old Mutual declined.
A retreat in oil prices weighed on energy producers including Total, helping push France's CAC 40 down 1.2 per cent. Germany's DAX slipped 1.6 per cent.