Hibernian Investment Managers had some good news for investors this week suggesting the weak performance of Irish stocks should soon be reversed. In its Market Review & Outlook, it forecast that the increasing attractiveness of Irish stocks, based on their relative good value and the sectoral make-up of the market, would trigger a rebound in the ISEQ shortly.
In the past month the Irish stock market has continued to go against international trends by falling by 4 per cent. Financial stocks as a group managed to outperform the index with AIB putting in the strongest performance with gains of about 6 per cent. First Active fared very badly with the stock closing 14 per cent lower in a month.
Among the leading stocks Elan has had a rough ride, falling by 19 per cent in US dollar terms. Its results exceeded expectations but the market reacted negatively to the news that a new product launch has been delayed by up to a year.
Otherwise CRH was flat, Smurfit was down by 11 per cent, Independent News & Media gained 2 per cent and Esat rose strongly, up 12 per cent, following a successful share placing.
Hibernian believes continuing strong economic growth and the high level of confidence in company profit forecasts will underpin positive sentiment. The ISEQ could also benefit from enthusiasm in international markets in the short term, it states.
