NCB forecasts recovery in Irish shares

NCB Stockbrokers says the equity market will recover in 2008 despite the tougher global trading outlook.

Earnings growth in the current year is forecast at 5% for firms listed on the ISEQ, against an anticipated 18% last year, said NCB in its 2008 Irish Equity Outlook.

But despite the significant dip in the earnings outlook “we see scope for equity valuations to recover and ratings to expand from the current 9.1x 2008 earnings”, said NCB.