London Market: Stocks buoyed by rising profits
Sunday 24 May 1998
The benchmark FT-SE 100 Index rose 0.64 per cent on the week to 5955.6 while the broader FT-SE 250 Index jumped 43.3 points to a record 5897.8, up 1.72 per cent. Investors think the FT-SE 250 will continue to outperform the benchmark index.
"Quite a few of the medium-sized companies look good value, and weaker sterling will help," said Gregor Logan, an investment director at MGM Assurance. "The fear of a rate rise has now receded."
South West Water, Anglian Water, United Utilities, Yorkshire Water and Bristol Water Holdings are slated to report full-year earnings this week.
"We are looking for reasonable dividend growth for water companies," said Peter Cogliatti, a trader at Williams de Broe. "Anything above 10 per cent would be good and anything under 8 per cent will be disappointing."
Water shares haven't risen as much as the rest of the stock market this year, hurt by the prospects of government-proposed price cuts. The FT- SE Water Index has climbed only about 7 per cent this year, compared with 17 per cent by the FT-SE 100 Index.
Bonds are expected to be little changed, and with little domestic economic news expected, overseas debt markets are seen as the most significant influence on gilts.
The only economic reports slated for release are a CBI survey of manufacturing activity on Thursday and a report on international trade on Friday. Both are expected to reinforce expectations that interest rates won't rise again soon.
"Domestically there's little for the market, and what there is won't change interest rate sentiment," said Philip Uglow, an economist at Sakura Bank.
"Gilts will take their lead from international markets, with US Treasuries probably the dominant influence."
On Friday, gilts were little changed after a report which showed that the economy grew in line with expectations in the first quarter. The benchmark 7.25 per cent government bond yield fell 2 basis points to 5.82 per cent.
Growth in first-quarter gross domestic product, a broad measure of economic activity, was revised to a gain of 0.5 per cent in the quarter and an annual rate of 2.9 per cent.
That's up from preliminary estimates of 0.4 per cent for the quarter and 2.8 per cent for the year.
Copyright: IOS & Bloomberg
Swedish stars ask fans for £195 pledges on crowd-funding website
voicesJust when you thought you could find a man, get married, and have a baby by the age of 35... it turns out you’re too late, says Grace Dent
sportNapoli 2 Arsenal 0: Gunners must now face either Real Madrid, PSG, Bayern Munich, Atletico Madrid or Barcelona in knock-out stages
musicAs Mariah Carey and Noddy Holder rake in the royalties from their classics, why there hasn't been a decent festive hit for 20 years?
theatreAuthor Daniel Rosenthal recalls the mishaps that almost brought the curtain down on the likes of John Gielgud and Diana Rigg
filmFilm producers sue Warner Bros for $75m over Hobbit films
lifeAs the Royal Mail plans to phase out deliveries on two wheels, it's no wonder posties are in a spin
musicThe 21-year-old beat Ella Eyre and Chlöe Howl to win the honour
lifeFull of the joys and want to help your fellow man? December isn't the time to do it
techLuke Blackall reports on precision engineered prams and babygros that monitor your child 24-7
- 1 Nelson Mandela memorial: ‘Bogus’ interpreter made mockery of Barack Obama’s tribute
- 2 It’s shameful that our universities have accepted gender segregation under pressure from the most oppressive religious fanatics
- 3 Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
- 4 Exeter to Edinburgh and back in a day: How one fresher's lost bet left him facing a 900-mile round trip
- 5 Selfie at funeral: Cameron squeezes in on Obama snap at Mandela memorial
- < Previous
- Next >
iJobs Money & Business
£77099.84 - £96375.26 per annum + Bonus + Benefits : Harrington Starr: My clie...
£45000 - £60000 per annum + Bonus and Package: Harrington Starr: Trading appli...
£50000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: A leading prov...
£70000 - £90000 per annum + BONUS + BENEFITS: Harrington Starr: A leading mark...