Stocks fell yesterday in line with Europe after a poor close overnight in New York. Most of the leaders gave up some of the previous day's gains as investors took fright at the first sign of trouble.

The ISEQ fell back 1.28 per cent to close at another four-year low of 3,875.96.

Dealers described the session as choppy with shares falling at first only to recover some ground in the afternoon as the US opened on a positive note.

Irish Life & Permanent was particularly badly hit, surrendering almost all the gains of the previous day as it fell 51 cents to €11.64 but the other banks also moved backwards. Bank of Ireland was down five cents to €10.15, having fallen as low as €10 earlier in the session, and AIB gave up seven cents to €12.43. Anglo Irish Bank was also hit, slipping 13 cents to €6.12.

Elsewhere, it was another poor day for building materials group CRH. Hit by asbestos-related selling at the start of the week, CRH has now fallen €2.11 from last Friday's close to €11.25, giving up another 20 cents yesterday.

Elan went against the trend, gaining 10 cents yesterday to €1.60 on news of a further disposal, following a 16-cent gain on Wednesday. Independent News & Media jumped between €1.48 and €1.35 before closing unchanged although it was not clear whether the company had been buying back its own shares for the third day in succession.

Among the second liners, there were big hits for DCC and Paddy Power, which fell 50 cents and 30 cents respectively to €9.20 and €4.60. Heiton Holdings was down 15 cents at €2.05 and Kerry off 32 cents at €12.83.

More news of record passenger numbers from Ryanair failed to stem a 22-cent slide to €5.83.