Irish shares ended marginally weaker as the ISEQ shrugged off a poor performance by most European stocks markets.

Technology and telecom stocks fell sharply across Europe as a tumble in the closely-watched Nasdaq index unsettled sentiment towards growth stocks around the world. In London, the FTSE ended 2.3 per cent lower while German stocks shed 2.8 per cent of their value and French shares lost 2.95 per cent.

However, interest in the Irish financial sector lent support to the ISEQ index, which closed just 11 points, or 0.2 per cent, lower. The financial index gained 2.4 per cent compared to the general index of shares, which lost around 1 per cent in value.

"The Irish market has outperformed other European markets and the main feature has been the financials," one trader noted. "The banks held up across the board, amid a perception that they are oversold."

AIB ended the day steady at €10.10 while Irish Life & Permanent was also unchanged at €9.10. Bank of Ireland shed six cents to €7.05 but Norwich Union helped bolster the sector, adding 50 cents to €7.10.

Industrials did not fare as well, however, with CRH closing 65 cents lower at €18.90 and Elan down 35 cents to €48.20. Among second-line stocks, attention focused on Adare, which jumped by 23 per cent to €8.25 after the group revealed yesterday that members of its management are planning a buyout.

Several of the Irish hi-tech stocks quoted on the Nasdaq took the full brunt of the bearish sentiment toward the sector. By the close of business in Dublin, Smartforce was down more than 20 per cent and Trintech had shed 14 per cent. In London, Baltimore lost £8.47, or nearly 9 per cent, to close at £86.30 sterling (€143.43).