What next for Irish stock market amid departures?

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The Irish stock exchange has seen a wave of departures in recent years with more exits possibly in the offing. Concerns have been expressed about the bourse's future as companies move in greater numbers to where the investors are. So, what lies in prospect for Euronext Dublin?

Vladimir Lenin is widely credited with the phrase 'there are decades where nothing happens; and there are weeks where decades happen'.

But why has there been such a rush for the exits of late and what is the future for the Dublin Exchange?This week could be categorised as one of those monumental weeks for the exchange's future. In a statement, it said the 'North American roofing space remained a key area of interest' for Kingspan, potentially hinting at some further overtures ahead.

Flutter Entertainment, the owner of Betfair and Paddy Power, may follow after a majority of its investors backed its plan to list in New York as it pursues a wider investor base.The departure of those two companies alone would shrink the Dublin exchange by up to 40% and have implications for government stamp duty receipts.There are numerous factors playing into the current events around the exchange.

European flotations and public offerings of shares have slumped in the current inflationary environment with higher interest rates and better liquidity in US markets. And then there is the flow of new names to the exchange, of which there has been a dearth in recent years.

 

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