Iseq:2,956.59 (–48.80) Settlement date:February 24th

GEOPOLITICAL TENSIONS weighed on equities yesterday and the Iseq was not immune, falling 1.6 per cent.

Equities suffered due to fears that global economic growth could be hindered by rising energy prices caused by ongoing political unrest in oil-producing countries in the Middle East and Northern Africa.

Uncertainty over travel in the area, combined with the prospect of higher fuel prices, hit international airline stocks. Ryanair was buffeted by the negative sentiment in the sector and slipped 12.6 cent to €3.51.

Bank of Ireland, which said on Friday it expected its operating profit for 2010 to be 25-30 per cent lower than the €1.4 billion it achieved the previous year, proved the worst performer on the day. The stock closed almost 9 per cent down, or 3.4 cent, at 35 cents.

Most financial stocks were off, with AIB dropping one cent to 27.2 cent and Irish Life Permanent sliding 4.5 per cent – just over four cents – to about 86 cent.

Packaging group Smurfit Kappa failed to get a lift from a strong set of results from its peer Mondi. In a morning note yesterday, Davy Stockbrokers said the results were positive for Smurfit’s profit outlook and reiterated its €12target for the stock.

Nonetheless, Smurfit dipped two cents to €8.95.

Cement producer CRH made some progress above the €17.00 mark before slipping backwards to close 23 cents down at €16.77.

Kerry Group was one of the few winners on the day, and added 25 censt to €25.40.

Readymix inched ahead by one cent to 22 cents, while Paddy Power managed to add nine cents to close at €28.90.

Overall, volumes in Dublin were fairly subdued as US markets remained closed for President’s Day and mid-term got under way in Ireland and the UK.