Investor optimism returns

21 September 2004
Despite the damp English summer weather, UK investors had an optimistic August for the first time in four years.

However, despite August's modest rise, confidence remains well below its highs for the year reached in January, suggesting that investors remain wary about the outlook for the stock market.

Head of UK Business at JP Morgan Fleming, Mark Campbell said: "It is encouraging to see that investor confidence has risen slightly and gone against the usual decline that we have seen in every August of the index's history."

He continued by saying: "A large proportion of respondents continue to believe that the stock market will remain broadly unchanged through the rest of the year. This is probably unsurprising given that the FTSE 100 still shows little sign of breaking out of the narrow 4,300 to 4,600 trading range that has held since November 2003."

At present 34 per cent of investors think the stock market will be higher by the end of the year, while only 25 per cent believe the stock market will decline.

However, 40 per cent of respondents remain firm in their belief that the value of stocks and shares will stay more or less at current levels.
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