Dublin Report:Paddy Power was the main talking point on the Dublin market as a surprise profit warning sent its shares tumbling.

Ireland's biggest bookmaker said its profits would be below expectations and that its win margins would be tighter going forward.

The news triggered a sell-off and by close of business Paddy Power shares dropped by 22 per cent from €13.35 to €10.40. The stock had drifted to a low of €9.95 during the day as more than 9 million shares changed hands and there was some hope in the market that the shares would hold at more than €10.

Eircom was also under pressure following its failure to secure the Republic's fourth 3G licence.

Its performance was further depressed by growing scepticism in the market about a likely bid for the company from Swisscom. The loss of the 3G licence and Swisscom's expressed reluctance to damage relations with Vodafone are seen as increasingly negative factors.

More than 22 million Eircom shares traded in Dublin and the stock lost almost 3 per cent, dropping from €2.27 to €2.21.

Fyffes was another struggler on the day with its shares falling from €2.34 to €2.18, down 7 per cent as the European Commission continues its examination of a new banana import tariff.

Financial stocks remained under pressure with buyers emerging in AIB and Anglo Irish Bank.

AIB ended at €17.18, down 7 cent while Anglo was 3 cent off at €11.05.

Bank of Ireland remained unchanged at €12.90 while Irish Life and Permanent lost 5 cent to €15.30.

CRH was able to make further ground on continuing positive sentiment towards trading conditions in the US. It rose 25 cent to €22.35, up over 1 per cent.

Elan added 15 cent to €8.85.

In the food sector, Kerry gained 12 cent to €18.32, Greencore shed 5 cent to €3.15 while IAWS was also down 5 cent ending at €12.20.