Equities tipped for recovery in 2008

TWO leading stockbroking firms expect Irish equities to perform much better in 2008 after a poor 2007 left the Irish market down 27%.

Davy Stockbrokers said yesterday Irish shares are being valued at just eight times 2008 earnings, the lowest price-to-earnings ratio since the mid 1980s. The ISEQ lost 26% of its value in 2007, leaving Irish equities trading at a 30% discount to other European markets.

“We believe time will prove markets to have been overly pessimistic, and we expect Irish equities to significantly outperform in 2008,” Davy Stockbrokers said yesterday.