City File: Large Companies

THE same could be said for most large companies. Typically, the market has already taken full account of the improved prospects for the Grand Mets, Allied-Lyons, Glaxos, GECs and ICIs of this world, big exporters and companies with large American interests (even now, the dollar is only back to where it was in May). And the flood of optimism overwhelmed legitimate doubts about management at companies such as Forte, which ended a third higher on the week at 154p.

Management still matters. The market overlooked one troubled giant now in the hands of a capable doctor: British Aerospace. Its cost advantage was much boosted by devaluation. At 207p, up a mere 13p on the two days, it must remain the most undervalued large company in the market, despite its well chronicled problems.