Why the Footsie should mind the gap
Article Abstract:
United Kingdom equities may offer good value, judging by the gap between index-linked yields and net dividend yields for stocks in the All-Share index. Index-linked prices have risen as a result of demand from pension funds, and this demand could persist for some time. Stock prices should also benefit from stock buy-backs and low interest rates. There are, however, risks involved in holding equities, especially if real growth of companies slows. Manufacturers have also seen rises in costs, which point to short-term problems for equities, so equities could be overvalued.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Pre-millennial tension for the Footsie
Article Abstract:
Investors are concerned that markets could become volatile as a result of a reduction in liquidity prior to the millennium. There has already been a reduction in cash held by non-bank financial institutions since April 1999, and this has had little impact. Thinner trading volumes could lead to an increase in volatility, though this will not necessarily occur. There are also risks from the year 2000 computer transition problem, which could affect individual companies. Risks involved in holding stocks are associated with higher returns.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Earnings risks
Article Abstract:
United Kingdom stock prices could be affected by earnings risks in 1998, but different sectors will be affected in different ways, argues Dresdner Kleinwort Benson. Cyclical sectors like engineering are more likely to see a drop in earnings growth, and pension funds are overweight in these sectors. Funds are underweight in pharmaceuticals and banks. The FTSE 100 is likely to perform better than mid-cap stocks, and not only because funds are underweight in FTSE 100 stocks.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Why the Footsie is still cheap. Why Footsie may still be cheap. Still attractive
- Abstracts: Why there is value in value. Why valuations are no problem. A top pattern
- Abstracts: Accepting the mission. Mission matters. Mission possible
- Abstracts: New load balancers can help your site serve more customers. ICE application to revolutionize e-commerce. Java still searching for its place in the Sun
- Abstracts: Wealth creation and bid resistance in UK takeover bids. Modelling takeover likelihood. Agency, bid resistance and the market for corporate control