Despite the uncertainty on world stock markets NCB Stockbrokers suggests that the Dublin market remains the most attractive in Europe for investors. It accepts, however, that it is difficult to escape the conclusion that concerns over the EMU rebalancing of stock portfolios is already beginning to hit the market. Irish institutions are beginning to sell off some of their Irish equity holdings to incorporate a wider exposure to the European market.

Investment decisions are increasingly being made on a pan-European sectoral basis. NCB believes that despite this inevitable switch, shares such as Elan, Galen, Ryanair, Viridian and Independent Newspapers, will be largely unaffected. Those most vulnerable include equity in the banking, building materials and paper and packaging sectors, according to the brokers.