Market jitters
Article Abstract:
The UK stock market has been affected by profit warnings illustrating that demand is weaker than foreseen. An increasing proportion of companies are operating at under 75% of capacity. The construction industry, timber merchants and textile firms are especially affected. Commodity prices rose in 1994, and this is causing inflationary pressure in 1995. UK base rates look set to rise though the UK chancellor may delay this rise until Nov 1995. Share prices could still continue to rise for a further six months or so from Aug 1995.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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UK equities: correctly priced
Article Abstract:
ABN Amro Hoare Govett sees UK shares as priced correctly though there is little scope for political factors. Underlying inflation is forecast at 3.5% for the end of 1996. Interest rates may have to be raised as a result of tax cuts, but political considerations will affect interest rates due to the imminence of an election. Industrial earnings are robust judging by 1995 interim results. Equities have been affected by takeover activity, while government securities are in a more difficult position.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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When big ceases to be best
Article Abstract:
Medium sized firms are more likely than large firms to be takeover targets, and this has affected the relative performance of their share prices in mid 1995. The UK stock market has tended to be resilient in the face of volatility in the US. Growth of UK gross domestic product is slowing, though this is expected. Business optimism is falling, but is still strong. Meanwhile, the UK bond repurchase market will begin from Jan 1 1996.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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