BOI Forecasts 20pc Rise in Shares in Next Year
IRISH shares continued to rebound, boosted this time by Bank ofIreland's forecast that the recentturbulencein stock markets could result in a 15pc to 20pc bounce in shares in the next 18months.
The ISEQ index of Irish shares closed up 90.69 points at 7,883.67.
Bank of Ireland Private Banking has said recent turbulence in equity marketsnow presents a 'compelling' buying opportunity for private investors.
It is confident returns of between 15-20pc are achievable over the next 12-18months from global equity markets but warns investors to be cautious.
Speakingatamedia briefing Bank of Ireland Private Banking director Kevin Quinn said:'Recent market volatility has caused many investors to take a long hard look atequity markets.
'It is our strongly held beliefthatthisrecent volatilityhasledtoan opportunityprivate investors cannot ignore. With valuations both in Ireland and ininternational marketsnearingmultiyear lows, our view is that most investors should consider equities atthis stage as there is substantial upside from these levels.
'The recent credit market turmoil may be a catalyst for a flight to quality.There are aspects of currentmarketconditions whichprivateinvestors need to be very mindful of, as the rules of the game may be changing.As risk is re-priced investors may look to the safer, less leveraged parts ofthe market and quality will become a watchword. …