Weaker financial stocks and a sharp fall by index heavyweight Elan left the Irish market sharply lower yesterday, although industrial stocks were generally firmer.

AIB suffered the most among the financials and, despite a trading statement that contained nothing to disrupt current full-year forecasts, the shares fell 48 cents to €10.36 in turnover of 2.1 million shares. Bank of Ireland traded in smaller volumes and lost 32 cents to €9.58, while Irish Life & Permanent bucked the trend and gained 21 cents to €12.40 after buying back 1.23 million shares at €12.20.

Despite a downgrade from "buy" to "hold" and a reduced price target from €20.50 to €18.50 from UBS Warburg, CRH was 18 cents firmer on €16.18 while Ryanair remained firm and closed seven cents higher on €12.

Downgrades following its rationalisation announcement led to heavy early losses for Waterford Wedgwood. The shares fell as low as €0.58 before rebounding to close five cents lower on €0.64 in volume of 5.4 million shares.

Heiton shares were steady at €2.25 after its profits warning, subsequent downgrades and a buyback of 843,000 shares. Potential predator Grafton was six cents lower on €2.97.

Best of the overseas-listed stocks was Neuer Markt-listed Conduit, which jumped 58 cents to €5.33 after it emerged that venture capital giant 3i has become a 10 per cent shareholder after buying out Sonera's directories business.