MARKET NEWS: Iseq: 4,558.85 (-10.20) Settlement date: September 12th  THE DUBLIN market slipped into the red yesterday, losing 10.2 points - or just 0.2 per cent - to 4,558.85, as the rally in Irish stocks came to a halt in late afternoon trading with international events overshadowing the market.

As the market opened, it looked as if Monday's rally would continue, with the Iseq trading up nearly 4 per cent at one stage.

However, the rally proved to be short-lived. Those gains were wiped out as many markets turned negative on reports from the US that plans by Korean Development Bank to take a stake in investment bank Lehman Brothers had stalled.

Despite a fall in oil prices, weak economic data and sentiment added to the gloom, particularly comments from European Economic and Monetary Affairs Commissioner Joaquín Almunia that the European Commission's interim economic forecasts due today would show growth prospects for the second half of this year were not very good.

Banks and construction firms were again among the most heavily traded stocks. Financials gave up most of the gains made earlier in the day, with Bank of Ireland being the only one to remain in positive territory as it closed the day 3 cent better off at €5.90. AIB finished 5 cent weaker at €8.75, while Irish Life Permanent shed 12 cent - or 1.65 per cent - to fall to €7.16. Anglo Irish Bank saw 10 cent knocked off the value of its share price.

A number of construction stocks were also under pressure. Grafton was down nearly 4 per cent as it shed 14.5 cent to €3.555, while CRH fell back by around 1 per cent, or 19 cent to €18.70. Kingspan, however, closed the day strongly, picking up 10 cent to €8.30.

Falling oil prices boosted airline stocks and Ryanair saw its share price surge by 6 per cent as it tacked on 16 cent to €2.80.