Around #1.2 billion was wiped from the value of the Irish stock market yesterday as weakness in major stocks dragged the ISEQ down nearly 3 per cent. The big losers were major banks, pharmaceuticals group Elan and industrial stock CRH with the ISEQ undermined by what one trader described as a "general market malaise".

Despite posting results in line with expectations, a subsequent earnings and revenue warning resulted in Iona losing #7.50 to close at #25.00.

Elan, which accounts for a quarter of the Irish index, dropped back #3.75 to #64.75, while Bank of Ireland lost 40 cents to #11.30 and AIB slipped 26 cents to #12.70. CRH was 47 cents weaker at #19.55.

After outperforming European markets for the past six months, the Irish market may be showing the first signs of nervousness at the global economic downturn.