Iseq:Dublin's benchmark Iseq index finished 0.6 per cent down at 2,675.73 today with leading stocks such as CRH and Ryanair losing ground, and the banks delivering mixed returns.

The performance meant Irish shares lagged their European peers. Europe’s Stoxx 600, which tracks leading stocks in 18 different markets, shed 0.5 per cent to close at 265.24.

In London, the Ftse mid-250 closed 0.45 per cent down at 10826.21.

European stocks weakened on news that China had raised its benchmark interest rates for the first time since 2007 to 2.5 per cent from 2.25 per cent, which prompted a fall in shares in basic mining and resource companies such as Rio Tinto and Xstrata.

In Dublin, the exploration group Petroneft provided the one real bright spark of the day. The company’s stock was up 10 per cent at 55 cent following news that a planned $43 million share placing had been over subscribed.

Dealers suggested investors who could not subscribe for the full amount were anxious to make up some of the difference on the market.

Investors bought around 20 million of the company’s shares in total, but most of the trades were in London, where the company is listed on the AIM.

The news was not so positive elsewhere in the market. Building materials group CRH, which accounts for around 30 per cent of the total index, shed 1 per cent to close at €11.75, having earlier dipped to €11.60.

The banks were a mixed bag: Bank of Ireland added 0.5 per cent to close at 59 cent, while smaller rival AIB dipped 0.5 per cent to 40 cent. Irish Life and Permanent shed 0.75 per cent to end the day at €1.59.

Among the larger stocks, drinks group C&C was one of the bigger fallers of the day, dropping 2.74 per cent to €3.161.

Dealers noted the stock was particularly volatile yesterday, opening at €3.25 and trading up and down before falling to its closing price. They said there was no real explanation for this.

Airline Ryanair also lost a bit of altitude, dipping 1.24 per cent to close at €4.052.