MARKET REPORT:It was all about the financials yesterday as a disappointing outlook statement from Bank of Ireland not only helped wipe €2.1 billion off the value of the Iseq index of Irish shares but also pushed it to its lowest close in 17 months.

One dealer said it was phrases such as "impossible to predict" and "sharp decline" in the Bank of Ireland outlook statement that did the damage and took the shine off interim results that were in line with expectations.

Shares in Bank of Ireland fell almost 9 per cent at one point, before recovering some ground to end the day down 5.5 per cent, or 57 cent, at €9.83.

A massive 18.2 million shares changed hands in Dublin alone.

AIB was also busy, with 10.5 million shares trading, and the stock also declined more than 8 per cent before clawing back some of its losses to close 6.8 per cent, or €1.05 lower, at €14.38.

Anglo fared slightly better, a move one dealer said was a result of the bank's lack of exposure to the Irish residential mortgage market. Its shares fell 2.9 per cent, or 30 cent, to €10.10.

Irish Life & Permanent, meanwhile, closed almost 5 per cent lower, or down 75 cent, at €14.40, a drop one dealer described as quite restrained given the bank's significant exposure to the Irish mortgage market.

In fact he also expressed surprise that the Iseq index itself was not down further given the significant declines in all of the financials, which together account for almost half of its share capital.

The one redeeming feature, he said, was a decent performance by CRH, which added 1.2 per cent, or 30 cent, to close at €24.54, and gains by some of the second liners.

Kerry rose 2.2 per cent, or 44 cent, to €20.56, while Greencore climbed 2.2 per cent, or 10 cent, to €4.64.