Hibernian Investment Managers is less enthusiastic about the prospects for the stock market for the rest of 1999. In its monthly Market Review & Outlook it suggests it is difficult to see anything other than very modest returns for the rest of the year.

The first quarter of 1999 has been characterised by continued gains in the main equity markets, with Far East markets particularly strong followed by Britain, the US, Ireland and Europe. There has also been considerable volatility, with bond yields up a little and the euro weakening against the dollar, yen and sterling.

For the rest of the year, Hibernian says it expects modest additional returns for investors, with the risk of occasional setbacks. "We are not convinced that the fundamentals have changed sufficiently in the Far East to support further substantial stock market gains. We expect some catch-up by the European markets, and investors should keep their return expectations in check".