Investors Confident in UK Stocks

Investor sentiment towards UK-listed companies has jumped thanks to positive economic data and a 15% stock market rise in just six months

Emma Wall 16 January, 2014 | 4:55PM
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Investors are feeling positive about home-grown stocks, according to the Lloyds Private Banking Investor Sentiment Index. The majority of investors predict further gains for UK companies, following a stock market rally in the second half of 2013. The FTSE 100 gained 14.4% over the course of the year, and with positive economic news widely expected to be on the way, many analysts and investors alike predict this bull run to continue.

Last year proved the most successful year for the blue-chip index since 2009 when it rose 18.7%, and the FTSE 250 index of small and mid-sized companies rose to an all-time high of 15,935 at the end of the year. Last year marked the second successive year that small and mid-cap stocks outperformed, proving the adage that smaller companies flourish during an economic recovery.

The best performing stock markets of 2013 were not UK indices however, but the US-domiciled S&P 500 and Japan’s Nikkei index. Investor sentiment remains positive towards American equities despite the announcement by the Federal Reserve’s exiting chairman Ben Bernanke that the central bank would tapering its quantitative easing programme. According the Lloyds Index, sentiment towards the US rose seven points.

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About Author

Emma Wall  is former Senior International Editor for Morningstar