Taking stock in London
Article Abstract:
The UK stock market is likely to be affected by concern over a general election which will influence share prices in 1996. BZW's forecast continues to be for the FT-SE 100 at 3750 by the end of the year. Goldman Sachs, in contrast, forecasts a drop in share prices of some 10%, and points to restructurings as evidence of tough conditions. A drop in corporate liquidity will mean fewer bids in 1996, which will also remove a factor that boosted prices in 1995.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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The puzzle of political risk
Article Abstract:
UK financial markets expect the UK Labor Party to win the next election, and government securities markets appear to have already included this event in their prices. Markets may not fully take into account the impact of a possible defeat for the ruling Conservative Party, as is shown by their behavior in the 1992 election. Equities are thus still vulnerable to political risk. Risks may have been reduced due to changes in the nature of the Labor party.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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