Disillusioned investors who hold underperforming second line stocks should use the ISEQ's current strength to offload these investments and replace them with quality international stock.

That's the advice of BCP Stockbrokers which suggests the traditional January rush into stockmarkets by investors is happening early this year and now is the time to move. Irish fund managers have publicly stated that they intend to reduce their holding of Irish shares from the current average level of approximately 30 per cent to as low as between 10 and 15 per cent.

This will continue to have a negative impact on the Irish stockmarket and in particular on smaller second-line stocks, according to BCP. "Many of these shares are illiquid and so it will take quite a while for fund managers to sell their large shareholdings," it says.