The Dublin market lost almost €5 billion in value today as shares listed on the Irish exchange fell by almost 4.5 per cent.
Stuart Draper, head of research at Dolmen Securities, told ireland.comthe ISEQ has lost almost 9 per cent in the last two days.
He said Irish shares were falling more severely than other European markets because of concern among international investors about the future of the Irish housing market.
"There is a perception internationally that we are another US housing crash waiting to happen and that this will affect of the rest of the economy. That is not what the facts of the data suggest but that is the perception. It is not an exaggeration to call what has happened to the Irish market as a major crash," Mr Draper said.
Since the market turbulence started at the end of May the Dublin market has lost almost €32 billion in value.
News that CRH is in talks with Cemex to buy US and European assets worth up to €3.2 billion ($4.5 billion) from the Mexican cement maker was greeted by a 109 cent fall in CRH shares to €26.55.
Mr Draper said the lack of certainty about what assets CRH was going to buy was behind the falling share price, along with a general selling of Irish-based stocks.
He said the likely quarter point interest rate rise tomorrow from the Federal Reserve and accompanying commentary "will be hugely important".
Financial stocks were among the worst hit today with AIB shares dropping 105 cent to €16.35, Bank of Ireland stocks are down 65 cents to €11.35 while Anglo Irish Bank shares have shed 90 cents to €11.7.
Irish Life and Permanent shares are also down today, falling 53 cents to €15.
Other fallers today include Kerry Group, down 30 cents at €21; Paddy Power shares are off 14 cents at €24.06; and Ryanair, down 15 cents at €4.9.
Independent News and Media shares are down 8.41 per cent €3.11. Elan was one of the few stocks to buck the trend, rising 65 cents to €13.78.
