Bloxham picks nine to beat market

STOCKBROKING FIRM Bloxham has picked nine Irish stocks that it says will outperform the market in 2009. They are building materials group CRH, the largest company on the Iseq index; food groups Kerry, Origin, Fyffes and Total Produce; industrial holdings group DCC; bookmakers Paddy Power; insurance group FBD and recruitment firm CPL.

Bloxham has recommended the nine stocks to investors on the basis that they all have “robust” balance sheets, well covered dividends and “convincing” business strategies.

However, overall earnings forecasts for the Irish market are almost certain to fall during 2009 and into 2010 before a recovery begins, “putting continued pressure on cyclically exposed businesses”.

Bloxham says that three key equity market forces are emerging for 2009: deep government intervention across the globe, unprecedented interest rate cuts and a collapse in commodity prices.

The global commodity index is down 32 per cent from the start of 2008 and 49 per cent from its peak, Bloxham notes.

“Although this is an indicator of economic stress, it also provides relief for consumers and manufacturers across the world,” according to its equity research team.

Bloxham expects the Irish economy’s gross domestic product to contract by 3 per cent in 2009.