Market Report: Ireland's benchmark stock index closed little changed yesterday as geopolitical uncertainty created reluctance among investors to buy heavily weighted shares.

The Iseq Overall Index dropped 18.69 points, or 0.2 per cent, to 7,779.46, following declines in its larger US and British counterparts, after Iran reiterated its intention of becoming a "nuclear country".

Iran, holder of the world's second-largest oil reserves, says the fuel is needed to produce nuclear power.

"The market is busier than it has been in the last couple of weeks but markets everywhere sold off on concerns about Iran," one Dublin trader said.

Shares of Allied Irish Banks fell 15 cent to €20.15, while rival Bank of Ireland dropped three cent to finish at €14.87.

Shares of building materials giant CRH dropped 30 cent, or 1.2 per cent, to €25.50 as optimism faded about the company's biggest acquisition to date after CRH announced earlier this week that it had agreed to buy Atlanta, Georgia-based Ashland Paving and Construction (Apac) for $1.3 billion (€1.01 billion).

However, declines in the Dublin market were curbed by gains in Ryanair, following the cancellation of a baggage handlers strike at London's Stansted Airport planned for this weekend.

Swissport, which handles baggage for Ryanair, agreed to an 11 per cent pay rise for its workers.

Ryanair had planned to bypass the strike by getting passengers to use its online check-in facility and travel without luggage. Shares of the airline rose eight cent, or 1.1 per cent, to €7.16.

Anglo Irish Bank also posted a gain, rising 10 cent to €12.15. Traders said the stock benefited from the bank's announcement that it would issue a pre-close trading statement for the first time on September 5th.

"Investors were assuming the statement is going to be positive and there was a few people buying the stock," a dealer said.