A further €4.2 billion was wiped off the value of the Irish market yesterday as the Iseq fell more than 4 per cent to its lowest closing level in 14 months.

"Absolute carnage" were words used yet again by one Dublin trader who said it was "simply all doom and gloom".

The financials were again the worst hit, with Anglo Irish suffering the most. Its shares were down more than 9 per cent at one point, before recovering some ground to close 7.7 per cent, or 97 cent lower, at €11.63. As many as 11.5 million shares changed hands.

One dealer said that, while banks all around the world were suffering in the light of the problems with Northern Rock, there was a feeling that Anglo may be particularly vulnerable because it has a smaller number of wealthier customers, meaning that if any one individual was to withdraw his or her deposit, it would have a bigger impact than someone with a smaller deposit at the likes of AIB or Bank of Ireland withdrawing theirs.

Still, AIB and Bank of Ireland were also significant losers, falling 6.4 per cent and 5.4 per cent respectively, to €16.28 and €11.35. Both banks closed off their daily lows.

Elsewhere CRH fell 3.4 per cent, or 94 cent, to €26.70 despite announcing what one dealer described as a potentially fantastic earnings accretive deal. He said however, that no one was paying any attention to the news at the moment and that it was all about the macro picture.

Independent News & Media, which is due to release its interim results today, fell 6 per cent, or 20 cent, to €3.13.

Ryanair meanwhile was very busy, with 11.8 million shares trading as the airline bought five million of its own stock at a cost of €24 million. The shares fell 2.2 per cent, to €4.94.