Shares on the Dublin exchange declined by almost 0.7 per cent yesterday as traders awaited clarity on interest rates from the European Central Bank, which meets later this week, and the Federal Reserve which meets next Tuesday and is expected to approve a rise. Figures on US input prices are also due this week.

One trader said larger world markets were being driven by major decisions on investment allocations in tech stocks and the Irish market did not figure in these discussions. However, a further decline on the technology-heavy Nasdaq exchange in New York drove down values on the Dublin exchange later in the day.

Irish tech shares felt the pressure on the Nasdaq with Iona down more than 8 per cent in afternoon trading, SmartForce dropping more than 4 per cent. Riverdeep, which reported third-quarter results yesterday, was more than 12.5 per cent down on the Nasdaq yesterday afternoon and, in Dublin, the share lost 4.25 cents to close at A5.20.

There was still no respite for investors in Eircom with the share unchanged at A3.75, still 15 cents off its flotation price. The share traded as low as A3.70 as uncertainty continued about the future of the 35 per cent stake in the company held by KPN and Telia, which is for sale.

Of the financials, Irish Life & Permanent held steady at A9.70 after a strong rise on Tuesday, although AIB lost seven cents to finish at A10.78.

And Bank of Ireland dropped nine cents in strong trading to A7.82 as investors took profits ahead of today's full-year results. While the bank is expected to record a 14 per cent profit rise to about A960 million, analysts will be looking for guidance on the bank's proposals to meet the challenge of the Internet and new competition.

Of the industrials, CRH added two cents to close at A19.02, Smurfit lost a cent to finish at A2.22 and Waterford Wedgwood added a cent to close at A1.08.