THE BOOST that the Irish market had enjoyed on the back of the Obama administration’s plans to get toxic assets off bank balance sheets in an effort to revive lending petered out yesterday.

The overall index was down 24.58 points or 1.1 per cent to 2,138.83 with the airlines losing the most air.

Aer Lingus was down 3.33 per cent to €0.58, while Ryanair was one of the biggest fallers during the session, shedding 6.26 per cent to close at €2.756.

The market seemed to be reacting to a report from the International Air Transport Association which said global airline losses could hit $4.7 billion this year, rather than a Bloomberg interview with chief executive Michael O’Leary in which he reiterated the airline’s intention to increase its fleet by 200 air craft.

Trading in the former state airline was considerably lighter at just 260,000 shares compared with 5.5 million shares changing hands in its low-cost competitor.

Although the overall index was down, the Iseq Financial was up just over 6 per cent to 517.96.

Bank of Ireland benefited most as its shares traded up to €0.576, a gain of 11.8 per cent on the day, thanks to a strong afternoon rally. AIB finished on €0.724, an increase of 3.5 per cent.

Irish Life and Permanent, reversing the losses of Monday, was up 2.8 per cent to €1.30.

Following the sell-off in McInerny on Monday when it reported a pre-tax loss of €206 million for 2008, the house builder’s stock steadied yesterday and was unchanged at €0.09.

Building materials group Kingspan continued the upward trajectory of recent days, adding 1 cent or 0.36 per cent to close at €2.76.

Despite considering all options, including corporate rescue or insolvency proceedings, bathroom fittings maker Qualceram was bid up 22.2 per cent to €0.11.

Settlement date: March 27th