Downside

Article Abstract:

UK share prices could drop during 1996, according to ABN AMRO Hoare Govett. Yields for government securities could increase and this could be prompted by perceptions of political risk as the UK nears an election as well as an increase in yields of government securities abroad. Shares are likely to become derated in relation to bonds. There are unlikely to be as many takeovers, share buy-backs and special dividends in 2nd half 1996 as there have been in the preceding year. If a Labor government is elected, this could also affect share prices.

Government securities

---

Fighting their corners

Article Abstract:

Optimists foresee a rise in UK share prices, which will be boosted by the Nov 1995 Budget. They include Robin Griffiths from James Capel, who foresees a further price rise before spring 1995. Pessimists include Nick Knight from Nomura, and Robin Aspinall from Panmure Gordon. Aspinall is concerned about industrial investment and constraints imposed by debt on the UK economy. Morgan Stanley, meanwhile, foresees a recovery in UK economic growth rates in 1996.

---

Downside risk

Article Abstract:

BZW foresees UK equities as stretched in terms of value. The FT-SE could reach 3500 by year-end 1995, rising to 3750 by year-end 1996. Equities could still bring a negative return in 1996, and the company may revise its forecast downwards. Share valuations do not provide leeway against shocks. UK interest rates are low which helps share prices, but rates could rise during 1996. Government securities yields are also low, but again these could rise.

Similar abstracts:

• Abstracts: Housebuilders. Building in the cost of provisions. Homeless rising
• Abstracts: R-R losing altitude. Little lift for Rolls. Divided on Rolls-Royce
• Abstracts: Wall Street won't get toppy till the Brits rush in. Money matters. Subterranean
• Abstracts: France: no more. Poll jitters in Paris. Stumbling block

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.