ISEQ outperforms world stock markets

THE Irish stock exchange has outperformed all major US and European markets this year and has the potential to record further gains, new research from Irish Life Investment Managers (ILIM) has found.

The report said in the first six months of the year the Irish market gained 10.6% and by 41% in the last 15 months. This compares to a 9.2% rise in London this year and a 39% rise over the extended period.

The US, even with strong economic growth, has seen its stock market gain 8.3% this year and 24% in the last 15 months.

“The Irish market has more than held its own against either European, or indeed, global indices. Looking purely at local market returns, in each of the last five years Irish stocks have outperformed their European neighbours, and over the period as a whole, have comfortably beaten world benchmarks,” the report said.

Eugene Kiernan, head of ILIM, said the Irish stock exchange could add to its gains this year as the banking sector is trading at a discount to their global peers. ILIM said the impetus for more gains would come from the acceleration in the international economy and expects world growth to be higher this year as the US economy picks up with Ireland showing the way in Europe.