Market report: Markets suffered yesterday as oil hit a new high, further weakening the dollar and sending investors into a defensive position.

Dublin shed just over 1 per cent, with dollar-sensitive stocks all giving up ground.

CRH, which relies on the US for around a half of all profits, was 10 cents weaker at the close on €20.25. That marked a recovery from the €20.04 level to which it spiked late in the session.

Kerry, which is also significantly exposed to the US market was in the red, finishing on €17.75, down 15 cents.

The inexorable climb in oil prices, despite a decision by Opec to release a further half million barrels of oil a day into the market, knocked Ryanair back from the €6 level. It spent the day on a downward trend, ending 11 cents lower on €5.89.

The bid story of the day, however, was the slide in Irish Life & Permanent. At one stage, the smallest of the four listed banks was almost 6 per cent weaker, although it rallied to close 50 cents, or 3.5 per cent, off on the day at €13.80.

Traders said the bank was a casualty of the announcement by Bank of Scotland (Ireland) that it was paying €120 million to buy the ESB's 52-strong chain of shops around the State to convert them to bank branches.

While the deal is not seen as a challenge to Irish Life & Permanent's position, the move means BOSI- long seen as a likely bidder for IL&P - will not now be interested.

Independent News & Media was flat on the day despite announcing a 55 per cent rise in pretax profit. The figures were in line with guidance, but there was disappointment at the lack of any upgrade on 2005 numbers.

Dealers said the group's stubbornly high debt levels and higher-than-expected losses at the London Independent also hit sentiment.

Paddy Power was one of the few stocks to buck the trend, adding 15 cents to €14.15, amid expectations of bumper turnover for bookies at Cheltenham.

Settlement Day: March 21st