Footsie waits for a wall of money
Article Abstract:
UK institutional investors have been wary of stocks, but this could change following a share price fall at the start of April 1997. Building society floations will increase the supply of shares in 1997 as will an increase in rights issues. Corporate share buying will decrease as companies' financial situations worsen. Retained profit is likely to be affected by the rise in value of pound sterling and increases in tax paid. Factors other than supply and demand could be more important, such as whether sentiment is bullish or bearish.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Footsie's struggle with Wall Street's charms
Article Abstract:
United Kingdom stock prices may appear cheaper than those of the US but there could be enough factors to justify this. The market expects that UK interest rates will rise faster than US rates, hitting UK earnings growth. Pound sterling is expected to drop in value in relation to the US dollar. UK stocks may also involve more risk because the UK economy is smaller, so more volatile. UK stocks could still perform better than those of the US if the market is mistaken.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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