Iseq: 2,365.01 (–79.51) Settlement date: September 27thTHE ISEQ had one of its sharpest falls of the month yesterday as fears of a world recession gripped investors in the wake of warnings from the US Federal Reserve and the International Monetary Fund.

The benchmark index of Irish shares finished 3.21 per cent down at 2,365.01 on a day that saw leading stocks heavily sold off in the wake of the Fed’s warning that the US economy faces “significant downside risks”.

In contrast to earlier in the week in Dublin, when volumes were light, trading in the market’s leading stocks was at or above normal but there was more interest in selling than buying.

The market’s biggest stock, international building materials group CRH, which accounts for more than 20 per cent of the main index, tumbled 5.82 per cent to close at €10.515, one of its lowest closing quotes of the year to date.

The group has a big exposure to the US, which accounts for half its €17 billion turnover and where it is one of the biggest players in its industry.

About 1.2 million of its shares were traded on the Dublin market, higher volumes than earlier in the week.

Another multinational, packaging group Smurfit Kappa, was also punished. It fell 6.25 per cent to €4.50.

Ryanair got away lightly. It ended the day 0.5 per cent off at €2.98, but it was down almost 1.9 per cent earlier in the day before rebounding. Over five million of its shares changed hands.

Titanium miner Kenmare lost almost 11 per cent of its value to finish at 44.9 cent, as mining and resource companies were badly hit across Europe.

The food sector lost some of its attraction for investors as well, with Kerry Group finishing off 2.9 per cent at €25.085.

Dairy and food ingredients group Glanbia was down 5.23 per cent at €4.35.