Market Report:The negative sentiment continued in the Irish market yesterday as the Iseq index fell 1.1 per cent, to end the week well below the 8,000 level at 7,791.

Over the course of the week the index lost almost 3 per cent - equal to €3.3 billion of its total value.

The financials - except for AIB - were again out of favour, as were most banks around Europe. Anglo led the way downwards, closing 2.2 per cent, or 28 cent, lower at €12.07. Dealers reported decent selling interest in the stock, with 4.2 million shares changing hands.

Bank of Ireland and Irish Life & Permanent, meanwhile, both fell 0.9 per cent, to close down 11 cent and 14 cent respectively at €12.07 and €14.97.

Conversely, AIB, the busiest of the financials with five million trades, was a gainer, climbing 0.6 per cent, or 10 cent, to end the day at €16.90.

One of the biggest losers, however, was Smurfit Kappa, which continued to suffer from broker downgrades. Davy yesterday lowered its full-year earnings forecast by 5 per cent, citing higher input costs, just a day after Merrion cut its earnings forecast by 5.5 per cent. Goldman Sachs also lowered its share price target for the company to €21.70, from €24.50.

Yesterday the stock fell 3.6 per cent, or 51 cent, to close at €13.49, although volume wasn't huge, with just under 900,000 shares changing hands. The shares are down 35 per cent since their May high.

Elsewhere, the airlines came under pressure as oil briefly moved above the $90 a barrel level. Ryanair closed down 2.8 per cent, or 16 cent, at €5.58 after earlier rising more than 1 per cent.

Aer Lingus, meanwhile, fell 0.8 per cent, or 2 cent, to €2.35, although volume was very light.