Dublin report: The Irish market cut its losses in afternoon trade but still ended the day lower as the mood on international markets proved negative.

The banks led the downward drift as overseas brokers remained cautious on the sector.

Credit Suisse began research coverage of the Irish banks, warning that consensus earnings forecasts did not reflect the potential of rising interest rates.

It put an "underperform" rating on both Anglo Irish Bank and AIB but set price targets of €13.20 and €21.30 respectively.

On Bank of Ireland, it is "neutral", setting a price target of €15.50. Goldman Sachs also proved more positive on Bank of Ireland, raising its price target to €16.08 from €14.46. On the market, AIB was the poorest performer among the banks, losing 38 cent, or 1.9 per cent of its value, to close at €19.62. Despite its recent strong half-year results, Irish Life & Permanent shed 23 cent, or 1.2 per cent, to €18.77. Bank of Ireland lost a more modest 10 cent to €14.45 while Anglo Irish Bank gave up four cent to €12.48.

Other leading stocks held in better, with CRH unchanged at €26.55 as management continued to meet investors. Media group UTV edged up by 1.75 pence, or 0.5 per cent, to 366.5 in London after releasing a mixed set of first-half results. In Dublin, it was unchanged at €4.95.

Dealers reported good volume in Fyffes, with 4.8 million shares traded, amid speculation of stake-building ahead of the spin-off of the general produce business. The shares closed three cent, or 1.8 per cent, higher at €1.66.

Shares in bathroom manufacturer Qualceram Shires surged by 12 cent, or 9.4 per cent, to €1.40 as the company announced plans to acquire the entire freehold interest in its Arklow property, which it plans to sell for development.

In the oil sector, Petroceltic slumped by five cent, or 17 per cent, to €0.24.

Settlement Date: September 14th.