Markets: The Irish stock market closed lower yesterday, despite an uneventful performance by overseas markets, as it was hit by the downward drift in stocks in the financial services sector.

Dealers said recent positive news on the Irish economy had yet to feed through to share prices. Despite its exposure to the Irish economic story, shares in Irish Life & Permanent lost 32 cents or nearly 2.5 per cent to €12.65 yesterday. Bank of Ireland also suffered, losing 21 cents, or nearly 2 per cent, to €10.59.

AIB performed better, losing just six cents to €12.37, helped by strong second-quarter results on Monday from its 22.5 per cent owned US associate, M&T Bank. Dealers said the market was also looking ahead to the bank's interim results at the end of the month. Anglo Irish Bank closed one cent weaker at €12.93.

The performance of other stocks was mixed with CRH edging up by 15 cents to €18.10 while Ryanair also fared well ahead of the next set of quarterly results in early August, adding six cents to €4.69.

By contrast, C&C fell back from recent highs, closing four cents lower at €2.64.

Dealers said there was good volume in Greencore, with more than a million shares traded, as the stock shed one cent to €3.06. The market is awaiting news from the EU on reform of the sugar regime while investors are also keeping a close eye on developments in the British supermarket sector, where there have been a number of profit warnings recently.

In the technology sector, Iona remained unloved as it lost a further 10 cents, or 3.5 per cent, to €2.70 in Dublin. On the Nasdaq, it was down a more modest 0.8 per cent by the Irish close to $3.30.

UBS upgraded shares in Warner Chilcott, formerly known as Galen, to a "buy" from "neutral", mainly on valuation grounds, and kept an 850 pence sterling price target. The shares closed six cents higher in Dublin at €9.53 while in London, they added 3 per cent to 636 pence.