The Irish Stock Exchange saw the value of business and the number of transactions conducted in the third quarter decline, according to figures published yesterday.
The exchange has, however, become the top location globally for listing by global investment funds.
The Irish equity market has continued to outperform larger rivals.
In the year to date, the ISEQ has advanced by 14 per cent - adding 3 per cent in the third quarter. That puts it ahead of the indices like FTSE 100, the Dow Jones Industrial Average, Nasdaq and the Eurostoxx 50 in terms of performance in 2004.
Private investors have returned to the market this year, according to the exchange, with the average number of transactions per day rising 9 per cent to 2,388 in the year to date compared with the first nine months of 2003.
However, transactions fell in the third quarter compared to a year earlier. In the three months to the end of September, an average of 1,993 transactions per day took place, down nearly 16 per cent on the same period in 2003.
More subdued institutional activity has also seen turnover decline 9.4 per cent so far this year. Average daily turnover has been €282 million, compared to €312 million in the same period last year.
In the three-month period, average daily turnover fell more dramatically, slipping over 19 per cent to €249 million from €308 million in the three months to the end of September 2003.
Companies listed on the exchange raised €323 million in the third quarter, bringing the total raised to date in 2004 to €2.47 billion - a figure that includes the Eircom and C&C flotations earlier this year.
The exchange has seen a dramatic increase in the number of investment funds listing in Dublin.
A total of 194 funds and sub-funds listed in Dublin during the period, bringing the total in the year to date to 777.
There are now almost 4,000 different funds and sub-funds listed on the exchange.
It has also seen significant growth in specialist debt instruments, with a 40 per cent rise in the number of listings in the last three months over the year ago period.
"The exchange is continuing to play a pivotal role in Ireland's development as a location for both investment funds and special purpose vehicles," said chief executive Mr Tom Healy.
