DUBLIN REPORT: Iseq: 3,254.71 (–142.29) Settlement date: May 7thA DRAMATIC sell-off swept across European equity markets yesterday as investors "pulled in their horns" over contagion fears arising from the Greek debt crisis, a Dublin-based broker said.

The Iseq tumbled 4.5 per cent to 3,254.71, leaving it worse off than the core European markets, but in a slightly better position than other periphery countries such as Spain.

The banks got knocked yesterday, with Bank of Ireland leading the fall. The stock closed down almost 8 per cent at €1.54. Irish Life Permanent was not far behind, falling back below the €3.00 mark and finishing about 7.5 per cent down at €2.82.

AIB shed 5.5 per cent to close at almost €1.36.

Cyclical stocks were badly hit by the sell-off yesterday, brokers noted.

CRH nosedived into the close after a weak day’s trading. The cement stock, which is due to issue a trading update this morning, was off 6.5 per cent, or €1.40, at €20.03. This was a low close, as the stock fell about 2 per cent in the last five minutes of trading.

Likewise, Smurfit Kappa also had a rough day, slipping almost 5 per cent to €7.33.

Airline stocks were also hit. Despite issuing a pretty positive interim management statement for the first quarter of the year, Aer Lingus fell 5.5 per cent, or 4 cent, to 69 cent, as concerns over the possibility of further disruption due to volcanic ash reared their head again.

Rival airline Ryanair was not immune either, falling almost 3 per cent, or 11 cent, to just under €3.62.

Financial services provider IFG succeeded in bucking the downward trend, gaining almost 7 per cent to close at €1.28.

One of the few other names to record a gain on the day was Dragon Oil, which rose by 1.6 per cent, or 9 cent, to €5.66.