Iseq: 2,872.37 (-91.21) Settlement date: December 11th

THE DUBLIN market was described by traders as “friendless” yesterday, as buyers steered clear of the Iseq on the eve of the budget. The index tumbled more than 3 per cent, with almost all its leading stocks ending the day in the red.

Banking stocks bore the brunt of the damage on what was a dismal day across global markets. “Irish banks struggled all day,” one trader said. “There were very few buyers knocking around.”

Irish Life & Permanentsank almost 12 per cent – or 44 cent – to €3.33.

The two main banking stocks weren't helped by a report from Merrion Stockbrokers which predicted that AIBwill require a further € 4.4 billion in capital while Bank of Irelandneeds €2.8 billion if they are to meet the core capital ratio target of 8 per cent.

AIB shed more than 7 per cent – 11 cent – to €1.41. Bank of Ireland wasn’t immune either, closing down more than 3 per cent at €1.56.

IFGwas the only stock to make any real progress on the day, rising almost 5.5 per cent – or 7 cent – to close at €1.36.

Packaging giant Smurfit Kappawas also up, adding three cent to €6.05, but almost all other stocks ended the day in negative territory.

Traders noted that there was a dearth of stock-specific news to provide upward momentum to the market.

Exploration company Tullow Oildid release a positive drilling update yesterday relating to a well in Ghana, but the stock only bounced two pence on the London Stock Exchange to close at £12.67.

Meanwhile the two biggest constituents of the Iseq – CRHand Ryanair– both lost the best part of 4 per cent, closing at just under €17.42 and €2.97 respectively.

This further depressed the index, which sank 91.21 points to 2,872.37.