CRH was hit by a profit warning from RMC, the world's largest producer of ready-mixed concrete, which said trading conditions across its key British, German and US markets had worsened in the second half of the year. The shares lost 50 cents to €12.90.

The stock market lost nearly 2.3 per cent yesterday, hit by weakness in the two leading banks and CRH.

However, dealers said volume was relatively light as trading started to wind down in the run-up to Christmas.

Both AIB and Bank of Ireland closed lower, the former losing 36 cents to €13.15 while the latter dropped by 57 cents to €9.95. Dealers said a 2 per cent drop in the European banking sector, the low interest rate environment and the recent Standard & Poor's report about the risks to the banks combined to create negative sentiment.

Kingspan was another loser in the construction sector, as the shares shed more than 10 per cent, or 18 cents, to €1.52 amid nervousness ahead of a proposed trading statement next week. But First Active's trading statement provided some positive news to the market and the shares closed two cents higher at €5.32.

Independent News & Media was another gainer, adding five cents to €1.50, as more than four million shares changed hands.Dealers said the shares were helped by reports that advertising was picking up and a reasonably upbeat trading statement from Trinity Mirror. Merrion Stockbrokers, which has been cautious on the stock, also upgraded Independent from a hold to a buy.

Sherry FitzGerald said it had bought a further 17,773 of its own shares on Wednesday at €1.40. The stock held steady at €1.45.