Market Report:There was a point yesterday when every single stock on the Iseq was in the red, such was the anxiety caused by the latest subprime panic emerging in the US.

The problem this time was a $3.7 billion writedown from Morgan Stanley, which came on Wednesday night and had pushed stocks down everywhere by morning. The Iseq was 3 per cent weaker almost as soon as it opened, but tried hard to drag itself up again.

By the time the session ended, the index was 1.95 per cent lighter, bringing its total losses for the week to 7 per cent.

The main drivers behind the decline were again the banks, with Anglo Irish leading the charge. The bank closed 6.4 per cent, or 67 cent, weaker at €9.92. Sean Quinn was not thought to be among the sellers.

Bank of Ireland was punished too, shedding 36 cent to close at €10.25. AIB fell by 37 cent to €14.40; Irish Life & Permanent finished 16 cent lower at €13.86.

C&C was also in pain, losing 41 cent, or 8.35 per cent, to close at €4.50. The company's head of cider, Brendan McGuinness, said he was retiring.

Aer Lingus was weaker too, declining by 8 cent to €2.22.

Waterford Wedgwood, one of the only newsmakers on the day, closed 8 per cent lighter at 2.3 cent on disappointing numbers. Good results from peer Lafarge did little for CRH, which dropped by 20 cent to €24.09. Kerry Group was out of favour too, losing 98 cent to close at €20.20 as its exposure to the weak dollar came into focus.

There was better news by the end for Glanbia, which gained 28 cent to reach €5.08, albeit on fairly weak volume.