Dublin Report: The ISEQ dropped to its lowest level in almost four months yesterday as general negative sentiment pushed all major European stock markets lower.

The gainers were few and far between as a lack of corporate news failed to gave investors anything to think about except the inflation concerns sweeping the global economy.

One trader said there was a lack of money in the market as many investors have all their funds tied up and some others are switching their money out of Ireland into other European markets.

Irish Life & Permanent was the hardest hit for the second day running, dropping 55 cents, equal to 3.8 per cent of the stock's value, to end the day at €14.05.

The rest of the financials also suffered, with Anglo losing 26 cents, or 2.3 per cent, to close at €11.05. Allied was down 25 cents, at €16.65, while Bank of Ireland fell 24 cents, to end the day at €12.55.

One of the other big losers was building materials group CRH, which continued its recent bad run, dropping 59 cents, or 2.8 per cent, to €20.88. As well as being hurt by the general negative sentiment surrounding the market, the stock took a further battering when Goldman Sachs downgraded it to "in-line," from "outperform." The investment bank also lowered its growth forecasts for the company next year. Elsewhere Elan was down 29 cents, equal to 4.2 per cent of the stock's value, at €6.70, while Grafton was also hit hard, dropping 20 cents, or 2.4 per cent to end the day at €8.26.

A profit warning by UK group Empire Online added to the plight of Paddy Power, which fell 40 cents, or 2.8 per cent, to close at €14. Even C&C, which has had a good run of late on the back of the outlook for its cider brand, failed to continue its positive performance, losing 8 cents, to end the day at €5.20.

The gainers, led by hotelier Jurys Doyle, were few and far between. Jurys was up 17 cent, at €18.89, while McInerney added 9 cents, to end the day at €8.89. Greencore rose 1 cent, to €3.82. Settlement Day: October 24th