Ireland’s economic performance as of late has been robust. The question, however, is whether the upward trend will continue or will be interrupted by thepotential no-deal Brexit of its closest trading partner.
The prolonged uncertainty between the UK and the EU makes it hard to predict whether the Irish stock marketwill grow over the next few monthsor will be dragged down into recession.
Irish economy outlook
Today, Ireland is squeezed between the opposing forces: international risks and overall internal dynamism. Considering domestic performance, Irish domestic demand successfully powers the economy forward, entering 2019 with significant momentum. At the same time, growing concerns about a possibleslowdown of the global economy may have an adverse impact on a small and open economy like Ireland.
If it manages to avoid thepotentially catastrophic consequences of the United Kingdom’s exit from the EU without a deal, Ireland has a good chance to continue its rapid growth in 2019. It will make the country one of the fastest growing economies in the eurozone.
Euronext Dublin: the official Irish stock exchange
Historically, the Dublin stock exchangewas established in 1793 at the Old Exchange Coffee House, now the City Hall. In 1985, the ISE became the competent authority for listing Irish stocks. In 1989, the first ISEQ equity index was introduced. In 2018, the Irish stock exchange (ISE) was acquired by Euronext, the Pan-European exchange, and became the Euronext Dublin.
Euronext is the primary European stock exchange operator, managing several major stock exchanges across Europe. Formed in 2000 following the merger of the Paris Bourse, the Brussels stock exchange and the Amsterdam stock exchange, Euronext aimed to harmonise the financial markets across the European Union.
Today, Euronext has 6 major subsidiaries: Euronext Amsterdam, Euronext Brussels, Euronext Paris, Euronext Lisbon, Euronext Oslo (acquired in 2019) and Euronext Dublin.
Ireland’s stock exchange – Euronext Dublin – operates 4 major markets:
- Euronext Dublin for listing Irish shares, debt, funds and ETFs,
- The Global Exchange Market for funds and debt,
- The Euronext Growth, and
- The Atlantic Securities Market for equity raising companies.
Today, the Irish Stock Exchange – Euronext Dublin – offersmore than 35,000 securities.
ISEQ 20 stock market Index
The ISEQ 20 is a benchmark stock market index for Ireland. It tracks the performance of the 20highest ranking companies with the largest market capitalisationand trading volume, listed and traded on the Euronext Dublin.
Historically, the ISEQ 20 index rose to over 1500 points in April 2007, before the 2008financial crisis. As aresult, the index sharply declined to under 300 points and has been steadily growing since then. The latest ISEQ 20 index price as of 21 June 2019 is €999.57.
The ISEQ 20 constituents 2019
AIB GROUP PLC
GREEN REIT PLC
HIBERNIA REIT PLC
BANK OF IRELAND GP
IRISH CONT. GP.
C&C GROUP PLC
IRISH RES. PROP.
CAIRN HOMES PLC
KERRY GROUP PLC
CRH PLC ord
KINGSPAN GROUP PLC
DALATA HOTEL GP.
ORIGIN ENT. PLC
RYANAIR HOLD. PLC
SMURFIT KAPPA GP
TOTAL PRODUCE PLC
In the end
Despite recent global geopolitical uncertainty, Ireland’s economy keeps climbing up, showing consistent growth. The country’s unemployment rate has recently fallen to a 10-year record low. The manufacturing industry has powered up and business conditions have been steadily improving. Therefore, we may predict that Ireland will keep its position asthe fastest growing European economy for years to come, which makes the Irish stock marketan attractive destination for future investments.
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