The ISEQ eased back 0.87 per cent in what one dealer described as a directionless day as financials gave up more of their recent gains. But the trend was broadly in line with the cautious stance adopted internationally following a perception by investors that a tightening of interest rates in the US may occur.

In Dublin, Bank of Ireland gave up Wednesday's gain and eased back 40 cents to €17.90 (£14.08), while AIB was down 55 cents to €14.50 (£11.42). Despite upbeat results earlier in the week, Anglo Irish was back 7 cents to €2.73 (£2.15).

Irish Life & Permanent, however, was up 10 cents to €13.70 (£10.79). Bank of Ireland Nominees announced it has a 6 per cent share of the stock, as a result of the transfer of its 9 per cent holding in Irish Life.

One dealer said some overseas investors had become nervous over last week's warning by the governor of the Central Bank, Dr Maurice O'Connell, that banks and building societies were engaging in "disturbing practices" in assessing the size of mortgage loans.

Elan, whose recent turbulence affected the ISEQ's index, has stabilised and was up 18 3/4 cents to $58.06 1/4 (€53.85) on the Nasdaq by the close of its Irish price of €53.92 (£42.47). CRH gave up an intra-day high of €19.15 and was back the equivalent of five cents to £12.45 (€18.90) on the day but Smurfit gained two cents, closing at €2.60 (£2.05).

Independent, through its stake in the cable and MMDS operator, Princes Holdings, gained from the high valuation put on Cablelink by its new owner, NTL. Independent gained 30 cents to close at €4.90 (£3.86).

Among the exploration stocks, Glencar eased back one cent to 54 cents (43p) following the company statement that 15,000 ounces of gold have been mined at the Wassa Mine. Bula edged up 0.125 cents to €0.0175 (1.4p). A director, Mr Anthony Peart, stated he had acquired 300,000 ordinary shares increasing his holding to one million shares.