Telecom Eireann took a plunge yesterday on foot of a sectoral sell-off, losing 32 cents or 6.7 per cent of its value and closing at €4.45 (£3.50). Analysts said the downturn was led by heavy selling of technology stocks across Europe amid renewed fears of an interest rate rise in the US. But there is also a feeling that a challenge to the EU anti-competition commission over the rates set by Deutsche Telekom to competitors buying into its network may affect other incumbent operators across Europe. "If tariffs are reduced, it would favour new operators over Telecom Eireann," one dealer said. Overall, the ISEQ was back 0.9 per cent in line with other stock markets. "The dominant influence on our market has been the overseas weakness," one dealer said.

There was some cheer among the main financial stocks. AIB came out of its mid-week malaise and was up 2.4 per cent or 27 cents to €11.70 (£9.21) having reached an intra-day high of €12.00 (£9.45). The feeling was selling had been overdone, according to dealers.

Bank of Ireland was up 20 cents to €8.70 (£6.85). Anglo-Irish, however, gave up 5 cents, closing at €2.40 (£1.89) and Irish Life & Permanent shed 10 cents, closing at €9.50 (£7.48). Industrial stocks had a mixed day with CRH shaving two cents to €19.58 (£15.42) and Smurfit up one cent to €2.83 (£2.23). Its US associate, Smurfit-Stone, was up in mid-day trade on the Nasdaq by $0.3125 to $24.375 (€22.57) on the news that the ailing Venezuelan paper company, Venepal, in which it has a 20 per cent stake, is about to be sold to the Mexican paper company, Copamex.

Meanwhile, it emerged that Organon Teknika, the pharmaceutical unit of Akzo Nobel NV, is suing Trinity Biotech and its US unit for an alleged patent infringement. Trinity was unchanged at $1.75 (€1.62)

Icon was back 4.5 per cent, from $22 to $21 (€19.44).