The Dublin market, traditionally viewed as a defensive play at times of uncertainty, has won its fair share of gains over the past few months, notching up growth of 18 per cent in the year to date. Una McCaffrey reports

This compares favourably with the 9.31 per cent return generated by the benchmark Euro Stoxx 50 index and comes close to overshadowing the 28 per cent loss suffered in Dublin last year.

While it might be a touch early to herald the arrival of the bull, something is clearly kicking up a bit of dust on the ISEQ.

Those involved intimately with the day-to-day workings of the market tend to be a touch more superstitious about labelling its trends than others, always fearful of tempting fate with overly positive predictions.

Dealers in Dublin have had to admit however, particularly over the past month, that investors have shifted out of the sluggish, cautious mood that governed their behaviour in 2002.

Equity desks are noting that decisions to buy are being made instantly rather than requiring a couple of days' thought, blocks of shares are crossing in bigger bulk and appetite for risk has been climbing.

The herd mentality that is always in evidence on the markets appears to be strongly positive.

On the exchange, the positive momentum is particularly evident among the second-line stocks, many of which have staged quietly impressive runs that have been well underpinned through the key reporting period of September.

Grafton, for example, has risen from 3.50 at the start of the year to 5.00 this week. IAWS has gone from 7.52 to 9.08, and Jurys has climbed from 7.00 to 9.80.

One dealer, who attributes such moves largely to a new "feelgood factor", believes the new mood has the capacity to generate much more upside before the market considers turning.