Dublin Report: The Irish market took yet another battering yesterday, following its overseas peers in a downward direction as a dearth of local news did little to excite investors.

"It's all about the macro issues at the moment," said one investor, citing concerns about rising inflation and the decision by the European Central Bank (ECB) to raise interest rates.

Figures released yesterday by the Central Statistics Office showed that Irish inflation rose by 3.9 per cent in May - the fifth consecutive increase - boosted by higher costs for home-heating oil, as well as groceries.

Sentiment was also subdued by comments from ECB president Jean-Claude Trichet, who after raising euro-zone interest rates to 2.75 per cent said that additional hikes were on the cards.

One blip of positive news was that Abu Musab al-Zarqawi, the al-Qaeda chief in Iraq, had been killed. This helped push the price of oil below $70 (€55) a barrel and as a result contributed in part to the positive performance of one of the Irish market's best performers, Ryanair.

The airline, whose stock was up 4.7 per cent, is the beneficiary of a positive roadshow by management following the release of full-year numbers earlier in the week. The stock closed up 31 cent, at €6.95.

There were very few other positive movers on the Iseq, which lost 1.4 per cent, to end at a near six-month low of 7,189.42.

The banks were among the main losers, with AIB leading the way, to close down 69 cent, or 3.8 per cent, at €17.51. Anglo Irish Bank fell 30 cent, or 2.6 per cent, to end at €11.10, while Irish Life & Permanent dropped 85 cent, or 4.7 per cent, to €17.40.

Bank of Ireland, however, held steady at €13.70.

CRH was hit badly, losing 53 cent, or 2.2 per cent, to €23.47, while Paddy Power lost 69 cent, or 5 per cent, to close at €13.

An upbeat statement from Independent News & Media failed to excite investors, leaving the stock little changed, down one cent, or 0.4 per cent, at €2.26.