| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Irish Economy Last Updated: Jan 3, 2013 - 7:56 AM

Irish shares rose by 17% average in 2012; ISEQ index back to mid-1997 levels
By Michael Hennigan, Finfacts founder and editor
Jan 1, 2013 - 10:18 AM

Email this article
 Printer friendly page

Irish shares rose by a 17% average in 2012 and the overall ISEQ index returned to mid-1997 levels.

The ISEQ index closed at 3,397 on Monday and rose 17% compared with the 2011 close of 2,902. The index rose 0.6% in 2011.

The overall ISEQ index closed at 3,377 on June 30, 1997.

In current price terms, the market capitalisation was at €85.5bn at end 2012 compared with €36bn in mid-1997.

CRH fell 0.39% in 2012; Elan dropped 26.98%; Aer Lingus closed at + 74%; Bank of Ireland +39%; C&C +59%; Datalex +129%; FBD +60%; DCC +36%; Glanbia +80%; Grafton +64%; ICON +0.61%; Kerry +42%; Kingspan +31%; Paddy Power +40%; Ryanair +30%; Smurfit Kappa +93%  and Independent News & Media -85%.

CRH and Elan together accounted for almost 30% of the market capitalisation in Dublin at the end of 2012. CRH was at 22%. Their primary listings are in London and New York respectively while their Irish operations are not significant parts of their businesses.

On February 21, 2007, the ISEQ index rose to an-all time high of 10,041 and the Financial sub-index rose to 18,098 (see detail under Anglo chart below).

Two weeks before, Finfacts reported that HSBC, the giant global bank, had stunned markets by announcing multi-billion losses on subprime mortgages in the United States.

Individual investors who had not cashed-in on the February peak in bank shares, could be politely termed foolish. The pension fund managers who had rode the bull market and continued to invest in bank shares could be fairly termed idiots, or eejits in the more common Irish vernacular.

The Irish Examiner reported in February 2007: "Much of the growth seen and expected in the Irish market is underpinned by the economic fundamentals.

This year and next the Irish economy will grow about 5%, compared to 1.5% last year for the Eurozone and 2.2% for 2007.

For the past few years, stock market performance has been up over 20%, with 25% growth in 2005.

Forecasts for this year are very good, with growth in the overall value of the market expected to reach 20% or better."

Anglo Irish Bank closed at 22 euro cent on the Irish Stock Exchange, on January 15, 2009 - - its last day of trading before becoming a State-owned bank.

On February 21, 2007, the ISEQ index rose to an-all time high of 10,041 and the Financial sub-index rose to 18,098. Bank of Ireland closed at €18.65;  Anglo Irish closed at €16.64 and AIB closed unchanged at €23.95.

A year later, on February 21, 2008, AIB closed at €13.80, Anglo Irish Bank finished at €8.84, while Irish Life & Permanent closed at €10.20 and Bank of Ireland traded at €9.50.

In June 2007, one month after the general election and six weeks before the onset of the international credit crunch, Finfacts reported that investors had dumped Irish shares after Irish Life & Permanent said in a trading statement, that its residential mortgage book would grow by 20% in 2007.

Only 20%!!!

In July 2007,  Chuck Prince, Citigroup CEO, had infamously dismissed fears about an early end to the postmillennial debt frolics. “When the music stops,” he told The Financial Times, “in terms of liquidity, things will get complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.”

In the same month, Bertie Ahern, Irish taoiseach (prime minister), who had been a hospital bookkeeper before entering politics, told a trade union conference that he did not know how people who moaned about the economy did not "commit suicide".

"Sitting on the sidelines, cribbing and moaning is a lost opportunity. I don't know how people who engage in that don't commit suicide because frankly the only thing that motivates me is being able to actively change something," Ahern said.

Two weeks before, Finfacts said the slowdown in the Irish housing market which would result in a fall in economic growth in 2008, would hit bank shares which "have got investors addicted to impressive double-digit returns during a long boom."

Ryanair's Michael O'Leary said: `We expect a big downturn in the next 12 months, we just don't know what's going to cause it. We must be due one.''

Finfacts article, June 2007: High foreign ownership of Irish shares will be bad news for stock market in 2008 when housing output will plunge 28% compared with 2006 peak

The ISEQ slumped 66% in 2008.

Even as late as March 2010, Jim Power, Friends First chief economist,  had to warn about the exposure of pension funds to equity markets.

Power said that in February of 2010, Irish managed fund assets had a weighting of 73% in equities compared to 18% in fixed interest.

“We are playing Russian roulette with the Nation’s pensions,” said Power. “Unlike a lot of other European countries we have excessive exposure to equity market volatility. A similar downturn to what happened in the last 18 months would decimate existing Irish pensions and have severe and long lasting consequences for the Irish State. This balance must be addressed immediately in order to prevent the creation of a new section in Irish society – 'The Retiring Poor.'

“There is an onus on pension scheme trustees to regularly review their investment portfolio. In addition to the investment balance, trustees should also review the fee structure of pension fund managers. In the majority of cases these fees have not been adjusted to reflect the recession and in many instances the fees are eroding all potential returns. The pensions industry needs to address it customers concerns and be more transparent, more accountable and more responsive to customer requirements,” he added.

Michael Wolfe, partner and head of pensions at William Fry, a Dublin law firm, suggested that “if possible, trustees should insist on the introduction of performance fees where pension fund managers’ fees are directly linked to the investment return.”

Now, that is a radical proposal in Ireland and to add sauce to it, wonder how more serious attention would be given to pensions if ministers and senior civil servants also had personal skin in the game  -- rather than the one-way bonanzas that they have created for themselves.

SEE also: Global shares rallied in 2012 with the help of central banks

Check out our subscription service, Finfacts Premium , at a low annual charge of €25 - - if you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask to support the service.

Related Articles
403 Forbidden


Execute access is denied.

© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
UK, Ireland talk up full employment; Focus on quantity not quality - Part 1
Ireland: Government explains how it understates recession job losses
Ireland: Government's spin and lies damage the economy
Dublin Airport's 75th birthday is today
Allied Irish Banks announces departure of its chief executive David Duffy
Irish annual prices fell in December; Goods exports slid in 12 months to November
Ireland: Kenny gets sums wrong on jobs - missing 60,000
Ireland has 4,000 exporters, Denmark has 30,000
Enterprise Ireland says a net 8,476 jobs were added by client firms in 2014
Irish Economy 2015: Banks will have to detail reasons for SME loan decisions
Irish industrial production rises at fastest pace since 1998 - but it may be an illusion
Irish official services index drops in November 2014 contradicting PMI survey
Irish retail sales volume up 0.2% in November 2014
Irish pension managed fund returns in double digits in 2014
Irish Live Register + activation scheme numbers at 450,100 in December - 21% of workforce
Ireland: Jobs in foreign-owned exporting sector in 2014 below 2000 level
Irish Exchequer deficit falls to €8.8bn in 2014; Budget deficit at 4% of GDP
Irish services PMI rose in December
Irish local + overseas contract manufacturing strong in December
Ireland's ISEQ share index up 14.5% in 2014; Ryanair up 56.5%
Irish Economy: Bruton says 80,000 jobs added since Q4 2011- 36% are farmers
George Orwell, bullshit and 2015 New Year resolution for Irish Government
Irish Economy 2015: ESRI expects GNP to grow 4.6% before adjustment
OECD provides update on BEPS corporate tax reform project
Irish Economy: ESRI says low income people biggest losers from Budget 2015
Irish Economy: Annual consumer inflation at 0.1%
Irish Economy: Flat growth in Q3 maybe noise?; "Spectacular" recovery continues says Ibec
Irish Economy: GDP flat in third quarter of 2014; GNP up 0.5%
Financial Times: Tax deals raise questions over Ireland’s growth spurt
Irish Economy: ESRI says “two-tier recovery” reflects unaddressed problems in boom years
Irish tax burden in 2013 in GNP terms similar to UK's; Down from 2000
Ireland to EU: 'Give us money for Irish Water'; 'Shut your trap and feck off'
New Irish private car sales up 29% to 91,380 in year to November; 2007 peak at 180,754
Irish Economy: Report says voter-friendly Budget not on horizon for several years
Ireland: Bord Gáis Energy Index plunges to 4-year low; Brent oil dips 18% in November
Irish Economy: Industrial production up 38.5% in 12 months - employment falls!!
Corporate Tax Reform: Ireland on sidelines as big countries make big moves
Irish pension managed funds delivered strong returns in November
Irish Live Register + public scheme numbers in November at 451,000 - 21% of workforce
Irish service sector PMI rises again - usual reality warnings apply