You are here: Home - Saving & Banking - News -

High five

Written by:

The FTSE100 has broken through the 5000 barrier for the first time in more than two-and-a-half years. Mike Collins shares the jubilation 
London’s FTSE100 share index has broken the 5000 barrier for the first time since June 2002 amidst strong trading on the market.

City analyst Colin Perry said: “We are in for a sustained bull market for at least a couple of years. I really think we’ve turned the corner now and, barring non-economic shocks such as natural disasters or major terrorist strikes, the index should hit 6000 before the end of 2006.”

Two of the main factors propelling the recovery are the revival of takeover activity and a run of excellent results from blue chip companies like Shell. “That’s true, but don’t forget we’ve also benefited from a robust domestic economy and a buoyant Wall Street,” commented Perry. “What happens over on the other side of the Pond has a big bearing on market sentiment here.”

Sector appeal

Looking ahead to the remainder of 2005, Richard Hunter, head of UK equities at Hargreaves Lansdown, said: “There are three sectors in particular worth keeping your eye on. IT hardware, which suffered badly in 2004, looks good for a recovery.

“Telecoms is currently awash with cash as Broadband and 3G finally deliver the goods. BT looks especially strong here.

“Finally, given the uncertainties for the year ahead, the ultra-defensive tobacco sector looks pretty solid to me.” Paul Feeney, head of European retail and bancassurance at Gartmore, commented: “Preferred sectors include IT hardware, telecoms, transport, media, basic materials and selected financials. We see little value in defensive such as utilities.” 

Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
FSA supports UK bond market

City watchdog the Financial Services Authority (FSA) yesterday saw off any move by Brussels to impose greater oversight on bond...