Euro will make overseas dealing more appealing

Irish stocks will feature prominently in the main European Stock Indices which will come into existence in the new year. Among the leading lights will be Bank of Ireland, AIB, Irish Life, CRH and smaller stocks such as Ryanair. All European stocks will be quoted in euros from January 1st next and this should make them a more attractive option for Irish investors.

Europe has never been the natural home for private investors as apart from the leading stock in the main bourses few Irish brokers would be able to offer authoritative advice on the less well known ones, while the risk of losing on currency movements has also been a deterrent.

At the moment it is quite expensive for investors to buy and sell European shares. To deal in these markets they must pay commission, custody charges and dealing charges which can amount to up to 5 per cent of the total trade in some cases. And when selling the shares the exit cost could be up to 3 per cent. These charges should be reduced with the introduction of the euro and investors will be able more readily to judge the relative price and value in each market with stocks all quoted in the new currency.