Market turbulence to continue

By Brian O’Mahony

Thursday, December 03, 2009

TURBULENCE in global stock markets is set to continue, as the financial sector continues to grapple with the massive credit crunch that started in the US in 2007.

Ireland is no exception and it has seen its market value cut by more than half from €88 billion in November 2007 to €38bn currently.

That’s equivalent to the value of the British grocery giant, Tesco.

Joe Gill, a senior analysts with Bloxham said market uncertainty will continue to dog the markets for some time and he is generally still sceptical of how the markets will perform.

While the MSCI world index is up 70% since March, "we recommend a very conservative approach to equities" in general, he said.

Fears of a double dip global recession cannot be ruled out while dollar weakness and a rush to investment in commodities, especially oil, have the potential to keep markets nervous.

Overall he sees potential momentum in the markets next year given the high cash balances held by many companies and the huge level of cash being held by big numbers of investors still sceptical about where to put their money.

In that context Gill is urging "a very conservative" approach to equities, but has identified a number of key Irish shares that could deliver in 2010.

Kerry Group and C&C are two players in the food and beverages sectors he is keen on right now.

This story appeared in the printed version of the Irish Examiner Thursday, December 03, 2009