The Dublin market took its lead from global events today as markets across the globe fell sharply on the back of fears about Dubai's ability to repay its debt.
But with US markets closed for Thanksgiving, and the London Stock Exchange shut for a time due to a technical glitch, one trader cautioned against reading too much in to today's performance.
Nonetheless it was a dismal day on the Dublin stock market with share prices down across the board.
Banking stocks were among the hardest hit, in line with the global trend which saw financials particularly affected by concerns about Dubai's financial health.
AIB lost more than 7 per cent, or 13 cent to close at €1.60. Bank of Ireland, which saw twice as many shares change hand as AIB, fared better, closing almost 2 per cent off at €1.68.
Proving that micro issues still had some influence, Irish Life & Permanent, which is not directly involved in Nama, was among the best performers, with one trader noting that concerns about possible delays to Nama may have weighed on the other two banking stocks. IL&P managed to end the day flat, a robust performance on a day with few gainers.
Following the publication of results broadly in line with expectations yesterday, Greencore made good headway in morning trade but fell off sharply at lunchtime, to close 2 per cent off at €1.35.
Kerry Group was one of the bright lights, closing 4 cent higher at €20.14, with one broker noting that its status as"a good defensive Irish stock" sheltered it from the more drastic falls yesterday.
News of a new board appointee and the announcement that shareholders had approved the final stage of the company's restructuring plan, failed to lift Independent News & Media. Volumes were relatively heavy on the stock, which closed more than 9 per cent lower at 14 cent.
Debt problems in Dubai hit financial markets across Europe which all saw significant falls.
The FTSE 100 ended 3.2 per cent lower, or down 170.68 points, at 5,194.13 - its lowest close since November 6th. Losses on the day represented the biggest percentage drop in eight months, although the index is still up 50 per cent since a low in March.
Banks took the most points off the index, as concerns over the health of the global financial system resurfaced after Dubai said two of its flagship firms planned to delay repayment of billions of dollars of debt. Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Standard Chartered all dipped significantly.
Banks were also the major fallers on the continent. In Germany the Frankfurt Dax ended at 5614.17 points, down 188.85 or 3.25 per cent. The Paris CAC closed at 3679.23 points, down 129.93 or 3.41 per cent.
