BCP Stockbrokers says it is time for investors to re-evaluate the Irish stock market. With stock prices at relatively low levels, it suggests investors should consider buying key stocks which at current prices have the potential to offer good medium to long-term returns. BCP believes the ISEQ will rise to 5,500 by year end with the larger capitalised stocks expected to make the best progress this year. BCP is recommending AIB, Bank of Ireland, Irish Life & Permanent, Eircom, CRH, Kerry, Ryanair and Iona as particularly good bets for investors at the moment. Among the smaller stocks, it selects Galen, Greencore and Anglo Irish Bank.

The Irish market will continue to be driven by international investors or the lack of them for the foreseeable future. Last year international investors backed away from the Irish market mainly because of concerns about an overheating economy and the overhang of Irish equities switching to European markets.