Investment News Barclays Stockbrokers Sees Shares Rally As Investors Have Faith
20 October 2009 / by Andy Davies
Investors are continuing to put their faith in the stock market as the FTSE 100 hit a 12 month high last week.
The index has been bolstered by strong performances in mining and banking shares, while energy companies also profited from oil prices continuing to rise with the cost of a barrel now standing at approximately 78 US dollars.
As the week progressed, buys fell to 50 per cent, with investors taking advantage of the index’s one year high by selling financials, mining and gas stocks.
However, towards the end of the week, buys hit a peak of 56 per cent to further signal investor confidence.
Commenting, Barbara Ann-King, head of investments at Barclays Stockbrokers, said that despite increasing unemployment and mixed economic releases, “equity markets have held on to their gains of recent months.”
“Equity markets are a barometer, not a thermometer – they are forward-looking rather than an indication of current conditions – and this may help to explain the apparent anomaly of a strong equity market against the backdrop of a poor economic picture,” she said.
Ms Ann-King continued by saying she believes the FTSE 100 reaching a 12 month high could be “a strong indicator of the much talked-about green shoots of recovery”.
Before adding it was encouraging to see Barclays’ investors’ “capitalising on the market rally of recent weeks” and she expects this to “continue as the markets continue gaining strength”.
© Fair Investment Company Ltd