Market Report: Bad news from the US put the brakes on the Irish market yesterday. The ISEQ shed 17.24 points to close on 5,686.73, having hit a 12-month high of 5,740.76 earlier in the day.

The market opened strongly, with the financials leading the way again.

However, poor earnings figures from investment bank Morgan Stanley and brokerage Bear Stearns and doubts cast on the accounting methods of home financing giant Fannie Mae by a US oversight board triggered a rash of profit-taking by investors.

Dealers said the slide might have been worse but for the expectation that Bank of Ireland will announce a strong trading statement this morning.

The bank finished the day four cents ahead on €11.38 but well down on the €11.59 it hit earlier in the session.

AIB outperformed its rival, adding nine cents to close on €13.55, just three cents off its intra-day high.

Anglo Irish Bank fell 33 cents to €14.82 on the day it named Mr David Drumm, head of its US and Irish banking operations, as the successor to chief executive Mr Sean FitzPatrick.

Dealers said that while the choice was something of a surprise the appointment was seen as a positive move in the traditions of the bank.

Irish Life & Permanent was back 15 cents at €12.75.

There was decent two-way trade in Eircom with the stock moving three cents ahead to €1.50 as 7.7 million shares changed hands.

CRH also saw some interest, closing down a cent on €19.80.

Ryanair, which holds its annual general meeting today, was reasonably quiet, with fewer than 850,000 shares traded.

It closed one cent firmer on €4.23.

IAWS added two cents to close on €10.35 ahead of full-year figures today.

Elan surrendered 60 cents to €19.22 in a bout of profit-taking though volume was light.

Iona Technologies was also a bit weaker, shedding 10 cents to €3.50 with stock on offer.

Settlement Day: September 27th