Ireland's largest industrial companies will be amongst the best performers in the final quarter of 1999, according to ABN-Amro Stockbrokers.

All of the industrial stocks are currently trading below their peak valuations and several continue to benefit from restructuring initiatives. ABN-Amro specifically favours Smurfit which is trading at a discount of between 20 per cent and 31 per cent to its peers. The broker also recommends Independent Newspapers which it believes should benefit from positive news from all divisions into 2000. It is issuing a buy recommendation for CRH on the basis of ongoing consolidation in the British sector and good prospects for future earnings growth.

The broker also suggests investors should look at Ryanair, Viridian and Esat Telecom in the short term for growth. But the overall outlook for smaller capitalised stocks will continue to be depressed because of technical factors. However, it says Green Property, Jurys, Kingspan and Grafton may manage to buck the trend.