DUBLIN MARKET: Iseq: 2,074.32 (+24.22) Settlement date: March 4thA TORRID day for stock markets across the world pushed down the value of Irish banking stocks, but gains by the Iseq index's biggest stock, CRH, meant the overall Dublin market closed up 1 per cent compared to Thursday.

There were massive trading volumes in AIBand Bank of Irelandas a result of a re-weighting of an MSCI equity index, which saw the two Irish banks exit the index. The resulting sell-off by investment funds tracking the index meant the banks' share prices fell sharply.

Bank of Ireland’s official closing price was 19 cent, down seven cent or 28 per cent on its previous close. AIB finished at 38 cent, down nine cent or 19 per cent on the day.

But as is now the norm, there were a range of other reasons why the banks’ share prices were under pressure, with everything from a poor finish to US stock markets on Thursday night, to the overnight release of horrendous industrial production figures from Japan weighing on sentiment.

News that the US government is taking a near 40 per cent stake in Citigroup provided a fresh drag on markets.

Other Iseq-listed fallers included Irish Life & Permanent, which fell 9 per cent to 63 cent, and Ryanair, which fell 1 per cent to €2.96.

However, it was a very strong day for food group Kerry, which gained 11 per cent to €16.80 as a result of positive sentiment following its annual results earlier this week. Grafton, which yesterday reported a 55 per cent fall in operating profit for 2008, was flat at €1.34.

Elsewhere, there were gains for Greencore, Kingspan, Elanand CRH, with the positive performance of the last two stocks keeping the index afloat.

CRHrose 3 per cent to €16.40, while Elanrose by the same percentage to €5.18.