Making its predictions for 1998, Riada believes that many of the star performers last year will still make good for investors this year.

Among the larger stocks, it is recommending, Avonomore Waterford, Bank of Ireland, Greencore, Irish Life, Irish Permanent and Smurfit. It believes the progress made by Avonmore Waterford in its £159million restructuring will be vital to its performance over the next 12 months. Bank of Ireland has already made a good start to 1998, and is expected to continue to deliver handsome returns for shareholders. Further solid growth in the Irish economy, and the expected drop in interest rates in the coming months will enhance the bank's growth prospects while the drop in value in the pound against sterling and to a lesser extent against the dollar will also boost its overseas earnings.

The outlook for Greencore is good, with earnings expected to grow, according to Riada. While Irish Life and Irish Permanent also receive upbeat forecasts. Irish Life is still fairly cheap, relative to its British insurers, while Irish Permanent, will benefit from the rapidly expanding Irish economy. Another factor likely to drive its share price ahead will be the removal of its legislative protection against a takeover bid in 1999.

And while turmoil in the Far East is keeping Smurfit under pressure, the stock is still relatively cheap within its sector and is expected to fair better later this year.

Compiled by Siobhan Creaton