Dublin report:The Irish market again outperformed its European counterparts on the downside yesterday, losing more than 1 per cent, to close at 7,785.

The financials were the main driver, which with the exception of Irish Life & Permanent all traded lower ahead of Bank of Ireland's pre-close trading statement due this morning.

One dealer said that while domestic brokers were relatively upbeat about the bank's performance, overseas houses were reluctant to invest in the Irish story at the moment. As a result all eyes will be on Bank of Ireland's comments relating to lending growth, particularly in the UK market, he said. Bank of Ireland fell 1.3 per cent, or 15 cent, to end the day at €11.86.

AIB, however, was the biggest loser and the busiest stock. As many as 9.5 million shares changed hands as the shares dropped almost 3 per cent, or 51 cent, to close at €16.60. This may again be the result of fund selling in the light of the company's exit from the Eurostoxx 50.

Anglo, meanwhile, closed down 1.9 per cent, or 25 cent, at €12.65.

Irish Life & Permanent bucked the trend, rising marginally to close up 6 cent, at €15.08. Volume, however, was light.

Another stock to buck the trend was IAWS, whose shares rose 5.8 per cent, or 85 cent, to close at €51.60 after releasing better-than-expected full-year results. Analysts said the company appeared to be well placed to face the rising commodity prices hitting the food markets.

Drinks group C&C lost some of the gains it made on Friday, closing down 1.5 per cent, or 10 cent lower, at €6.62. Dealers said the stock was very susceptible to market rumour at the moment and that Friday's 10 per cent gain was a result of yet more speculation about it being taken over.