The Irish stock market offers some of the best value for investors in Europe, according to Dutch bank, ABN AMRO. It suggests Irish stocks still have a lot of catching up to do with shares looking increasingly cheap against their European counterparts.

The bank states that while some of the weakness may reflect fears that the Irish economy may be overheating, there is little evidence available to support this theory, at least within the next two years.

Irish shares have also been depressed by the traditionally strong link with the British market, but as Ireland joins EMU, this link looks set to be broken, and drive the market higher once more. ABN AMRO believes most shares still have the potential to yield sizeable gains for investors.

Among the larger stocks, ABN AMRO recommends AIB, Avonmore Waterford, DCC Elan, Fyffes, Irish Life, Irish Permanent, Kingspan and Smurfit.

Among the smaller companies, it directs investors towards Barlo, Grafton, Green Property, IWP, Jurys and Tullow.