Investors warned off UK-exposed Irish stocks

Investors in the Irish stock market should favour Irish firms that have less exposure to the UK — until the outcome of the British referendum on membership of the EU is known, Merrion Capital has said in a major report.

The stockbroker believes the UK will vote to stay in the trading bloc but that the potential for a further slump in sterling ahead of the June 23 vote will likely cause jitters for Irish stocks that rely on the UK for a large slice of their sales or net profit.

Sterling has slid over 16% since late last year as markets watch for hints from UK opinion polls and attempt to price in the risk of Britain leaving the EU.