DUBLIN REPORT: Iseq: 2,820.68 (–34.84) Settlement date: July 22ndIRISH BANKS were "friendless" yesterday as a second tranche of loans was transferred to the National Asset Management Agency (Nama), a Dublin-based trader said.

The average “haircut”, or discount, applied to the latest wave of problem loans acquired by Nama from four participating banks was 48 per cent. In the case of one institution, Irish Nationwide, loans were discounted by more than 72 per cent. These rates were described by one trader as “horrendous stuff”.

Consequently, banks were much weaker on the day. Bank of Ireland moved down by more than 4 per cent, or three cent, to 66 cent. AIB slipped about 3.5 per cent, or three cent, to 85 cent.

Irish Life Permanent, which is not involved in Nama, was more or less unscathed, closing fractionally down at just below €1.58.

Meanwhile, low cost airline Ryanair is due to release results this morning. Brokers expect the numbers to be watched closely by the market. The stock lost a little ground in advance of the announcement, falling more than 1 per cent, or four cent, to just under €3.78.

Building materials group Grafton put in a poor showing despite issuing an upbeat trading update last week. The stock closed down 4.4 per cent, or 12.5 cent, at €2.70.

Paddy Power was one of the few names to finish in positive territory, adding more than 1 per cent to €26.99.

Otherwise, the Irish market was characterised by the light volumes.

The Iseq index of Irish shares has softened in recent sessions, and fell again yesterday. It closed down more than 1 per cent at just over 2,820.

The announcement that Moody’s had downgraded Ireland’s bond rating had little impact, according to one broker.