The Dublin market fell almost 3.5 per cent today wiping some €3.8 billion off the value of Irish shares as fears over bank financing resurfaced with Northern Rock's requirement for emergency funding from the Bank of England.
Unsurprisingly, banking stocks suffered with Anglo Irish Bank shares were down 5.3 per cent, Bank of Ireland down 2.3 per cent, Irish Life and Permanent down 5.1 per cent and Anglo Irish off 5.3 per cent.
The London market was dragged down as the Bank of England bail-out of Northern Rock raised fears of further funding problems in the banking system. Northern Rock shares closed down 31 per cent.
An afternoon rally clawed back the worst of the session's early losses, although the FTSE 100 still closed 74.6 points, or 1.2 per cent, lower at 6,289.3. Gains earlier in the week ensured that, over the five-day period, the benchmark rose 1.5 per cent.