THE IRISH market was the victim of an aggressive sell-off late in the session yesterday, falling back in afternoon trade to finish down 8.4 per cent, or 256.25 points, at 2,803.59. With interest rate cuts in the euro zone and Britain already priced in, markets across Europe failed to rally on the back of the news and the Irish market was no exception.

In line with bank stocks across Europe, Irish financials fell significantly yesterday, dropping by 11 per cent on average, with Bank of Ireland and AIB the worst performers. Brokers say the banks are still being hit by fears over their need to recapitalise.

Analysts at NCB said yesterday that once the banks "grasp the nettle and deal with the capital issue, the stocks will bounce".

Having held up the previous day despite its poor results, AIB gave up 79 cent, or 18.4 per cent, to fall back to €3.51, as stockbrokers revised their earnings estimates for the bank. Bank of Ireland was almost as weak on the day, dropping back by 42 cent, or 18 per cent, to finish down at €1.92.

Anglo Irish Bank held up for most of the day and was actually ahead by about 6 per cent at lunch-time, but it too weakened later in the day, closing down by 12 cent, or 4.9 per cent, at €2.33.

In relative terms, the star performer was Irish Life Permanent, which was largely flat on the day, adding one cent, or 0.4 per cent, to climb to €2.36.

A steady performer for some time, CRH gave up €2.26, or 12.7 per cent, to decline to €15.50, amid fears over its forthcoming results and those of its peer, Lafarge.

Ryanair was again one of the better performers, as falling oil points saw the stock close largely flat on the day, down by one cent, or 0.3 per cent, at €3. Paper and packaging firm Smurfit Kappa had another strong day, as it added 4 cent, or 2.1 per cent, to climb to €1.96.

Settlement date: November 11th