Market Report: WEAK ECONOMIC data weighed heavily on banking stocks yesterday, particularly Central Bank data which showed mortgage lending grew at the slowest rate since 1992, a negative outlook for the banking sector from rating agency SP and CSO figures which said that the Irish economy contracted in the first quarter.

With the Iseq index of Irish shares weighted heavily towards financial stocks, the Irish market spent the day in negative territory and eventually closed down 86 points or 1.6 per cent at 5,209.57 points.

Irish Life Permanent was hardest hit among the financials as it plunged more than 10 per cent to €6.61, shedding 76 cent.

Bank of Ireland also took a hammering throughout the day. At one stage around 8 per cent was knocked off its value, the bank's biggest one-day fall in eight years. By the close of business, it had recovered somewhat but the stock was still down 5.6 per cent or 32.7 cent to €5.523 on strong volumes.

Anglo Irish Bank also endured a torrid day as it tumbled nearly 8.5 per cent, shedding 55 cent to €5.95 with around five million shares traded. AIB suffered least among the financials but was still around 2 per cent weaker as 20.1 cents was knocked off its share price which finished at €9.799.

Despite figures which showed that sales of its Magners cider in the British off-trade market rose by 14 per cent in the month to the middle of June, CC also had a day to forget as it dropped nearly 8 per cent, or 30 cents, to €3.52.

There were few positives on the day although food stocks were generally stronger. Greencore recovered more than 5 per cent as it added on 10 cent to €2, while Kerry was 2.8 per cent stronger at €18.80. IAWS tacked on 20 cent to €15.90. Construction giant CRH also put in a good day, rising nearly 5 per cent as it gained 85 cent to €18.70.