Financials the main losers during volatile day of trading

Iseq: 4,050.19 (-155.48) Settlement date: September 19thTHE ISEQ suffered another rollercoaster day, with financial stocks taking the brunt of selling early on before recovering some of the ground lost in the afternoon.

The index fell below the 4,000 mark during trading, the first time it dropped below this level in intra-day trading since early last month. It closed down 3.7 per cent yesterday, outperforming financial stocks which fell 5.6 per cent.

Fears about the survival of insurance giant AIG weighed on bank stocks, which dominated trading and took a hammering in the morning session. The sell-off in Irish bank shares mirrored Monday's performance, with some of the stocks down as much as 15 per cent before rallying slightly after lunch. Traders described huge swings in prices early in the day.

Anglo Irish Bank fared the best of the Irish financial stocks, closing down 2.1 per cent, or 10 cent, to €4.55. Irish Life Permanent suffered the most in the selling frenzy over the last two days. It dropped 8.8 per cent, compounding its 13.3 per cent fall on Monday, to close at €5.33. AIB fell 7.4 per cent, or 55 cent, to €6.95.

Bank of Ireland closed 3.3 per cent, or 16 cent, lower at €4.62 as the investors awaited a trading statement from the bank today.

CRH climbed as investors responded to rumours that the world's largest cement maker Lafarge would merge with Holcim, the second biggest player.However, CRH fell back, closing down 4 per cent at €17.70.

Ryanair and Aer Lingus both gained early on as oil prices fell towards $90 a barrel due to concerns that the events in the US would further weaken demand.

Aer Lingus ended up 1.2 per cent, or almost 2 cent, at €1.52, but Ryanair closed down 0.9 per cent, or 2 cent lower, at €2.70.

Food companies Glanbia closed down 5.6 per cent, or 24 cent, to €4.00, while Greencore fell 4.6 per cent, or 10 cent, to €2.04.