Calculators
-
Mortgage Calculator
See how much mortgage you can have
-
Debt Calculator
Work out how we can help you manage your debt
Contact us...
FTSE reshuffle
As the FTSE 100 undertakes its quarterly reshuffle Nick Raynor, investment adviser at The Share Centre, shares his views on the new entries and what it means for investors.
“Wood Group and 3i leave the FTSE 100 this morning and make room for Bunzl and Ashmore. The poor performance of some of 3i’s investments may have caused it to be downgraded from the index. The departure of the international services company, Wood Group, from the FTSE 100 was the result of its selling of assets and rewarding shareholders in the form of a special dividend.
“Investors may want to keep a close watch on both 3i and Wood Group over the coming weeks as those that fall out of the FTSE 100 often have a revival.
“Bunzl is a familiar face in the FTSE 100 moving in and out frequently and having only lost its status in March, it is re-entering today; largely due to the steady progress the company has made.
“In an effort to boost revenue and profits Bunzl has made several acquisitions over recent years and has built on the company’s global presence. Bunzl offers stability and growth potential that may be attractive for investors who don’t like to take too many chances. We resume our coverage of the company’s return to the FTSE 100 with a 'buy' recommendation.”
“It is nice to see new blood entering the FTSE 100 with Ashmore making an appearance for the first time. This up and coming company is moving quickly and has seen a very respectable rise during the course of 2011.
“Behind the company’s rise has been investors’ appetite for investments with exposure to economic growth in foreign emerging markets. However, our concern is that now the value in these markets is available through UK equities and some European stocks, the money may start to flow away from Ashmore as investors buy into what they know.
“Ashmore has had a good run, but new investors should be wary and those holding the shares may want to take some profits as we feel it is overvalued. We recommend investors ‘hold’ for now.”
THIS DATA IS PROVIDED BY NICK RAYNOR, INVESTMENT ADVISER AT THE SHARE CENTRE. THIS IS NOT INTENDED TO CONSTITUTE AN OFFER OR AGREEMENT TO BUY OR SELL INVESTMENTS.
Risk Warnings:
Investing in general, and the products and services mentioned above may not be suitable for all: if in doubt, individuals should seek independent financial advice. The value of investments and the income from them can go down as well as up and investors may not get back their original investment. Past performance is not a reliable indicator of future performance.
The bases and levels of taxation relating to ISAs, CTFs and SIPPs are subject to change and the value of these tax allowances may depend upon the circumstances of the individual.
Moneyextra.com recommends you take independent financial advice before acting on any article
Back2011-09-20 09:08:59 © Moneyextra.com