Shares gave up all of Wednesday's gains yesterday, closing nearly 2 per cent lower as all of the major European indices lost ground.
"We benefited from a patriotic rally in the run-up to September 11th but that fell apart though not on any huge volumes," one dealer said. He added that the market would find it hard to make progress as long as the uncertainty over Iraq was hanging over it.
Financials, which have advanced strongly in recent days, surrendered a large part of their gains. AIB fell by 37 cents, or 2.8 per cent, to €12.66 while Bank of Ireland was down 50 cents, or 4.3 per cent, to €11.20.
Irish Life & Permanent fared better than the two big banks, giving up just five cents to €12.90 while Anglo Irish lost just one cent to €6.28.
Leading industrials also lost ground with CRH down 25 cents at €14.65 while Ryanair shed 20 cents to €5.60 amid growing concerns about hikes in oil prices in the event of war in Iraq.
Dunloe Ewart shares traded in above-average volume again yesterday with more than two million shares changing hands in two separate transactions. The stock closed two cents higher at €0.35.
Despite the general market weakness, food stocks remained popular. Fyffes benefited from the reiteration of a buy recommendation from NCB, which set a price target of €2.00 for the shares.
It closed four cents higher at €1.49 with nearly 1.7 million shares trading.
There was good volume in Glanbia as well with over a million shares changing hands although the stock ended unchanged at €1.60 while Greencore gained 15 cents to €2.95.
