Market Report:THE BEARS were back on the Irish stock market yesterday, as the Iseq index fell 1.6 per cent and came off worse than the major European markets.

Compared to last week's high-jinks, though, it was an uneventful trading session, with stocks weakening in unremarkable fashion across the board.

Goodbody Stockbrokers banking analyst Eamonn Hughes predicted yesterday morning that the excitement of last week might now die down a little, with the focus shifting back to the macro-economic backdrop of declining asset prices, falling earnings, weakening economies and elevated funding costs.

For their part, the Irish financial stocks all closed down yesterday. Some 5 million shares traded in Anglo Irish Bank in Dublin and it finished down 5 cent at €8.70, off half a point.

AIB fell 2.2 per cent on volume of 1.2 million, while Bank of Ireland dropped more than 3 per cent on volume of 2.5 million.

Irish Life & Permanent fell 1.2 per cent to €12.60, down 15 cent.

CRH drifted lower, losing 32 cent on the day to finish down 1.3 per cent at €23.95.

After heavy trading in recent days, there was much lighter volume in Independent News & Media shares, and the stock fell 2 cent to €1.73, down 1.2 per cent.

Ryanair, which yesterday announced a pay freeze for senior management as part of a cost-cutting programme, saw volume of 9.5 million between the Dublin and London markets. The stock fell 6 cent to €2.93, down 2 per cent.

Uncertainty persists throughout stock markets, with opinion divided as to whether equities will plumb new depths or pick themselves up in the coming weeks.

Pharmaceutical company Elan drifted down 4.73 per cent at €13.30.

Iseq: 6,223.98 (-103.57) Settlement date: March 31st