The Irish Stock Exchange expects equity turnover to hit €80 billion this year after posting a strong first-half performance that saw dealings increase by 14 per cent to €38 billion.

It also emerged yesterday that the exchange itself had a fee income of €11.4 million last year, earning a surplus of €2.55 million.

Half of its fee income came from the listing of specialist investment and securitisation funds, a business it has been growing for the past decade.

In a review of the market's first-half performance yesterday, chief executive Mr Tom Healy said turnover had continued to improve over the past two years, despite the loss of leading stocks like Eircom and Smurfit.

"If you look at our turnover, it was 51 million in 2001, last year it was €72 million, and we could be looking at €80 billion this year," he said.

Figures for the first half show that equity trading on the exchange grew by 14 per cent year-on-year to €37.9 million. On average, it traded €306 million in shares a day.

At the end of the period, the ISEQ overall index was 4,280 at the close of business on June 30th, 7 per cent up on 2002.

But Mr Healy conceded that the market would have to wait until at least next year before it sees any new flotations to replace the companies it has lost in the recent rash of de-listings.

He said the market believed the most likely trigger for any new round of initial public offerings would be an improvement in the besieged technology sector.

His colleague, director of trade and regulation, Mr Brian Healy agreed there was no guarantee that future IPOs would not by-pass the Dublin market.

However, he argued that most of the Irish technology companies that had floated in the recent past had taken dual listings that included Dublin.

The exchange's own returns for last year show it has substantial cash reserves.

Fee income for year-ended December 31st grew from €9 million to €11.4 million.