Investors expect FTSE to rise more than 5% in 2013

11 February 2013

  • Halifax Share Dealing surveys investors to establish what impacts their investment strategies and where they are investing

With the latest ONS figures showing the UK economy shrank 0.3% during Q4 2012, the
latest Halifax Share Dealing Market Tracker reports investors are split 50:50 on whether the economy will grow by more than 1% in 2013.

Nevertheless, nearly two-thirds of investors (63.9%) anticipate the benchmark FTSE 100
Index will defy the expected 'bumpy economy' to end the year more than 5% higher, and
59.1% of investors anticipate the UK will be able to hang onto its AAA rating in 2013.

Damian Stansfield, Halifax Share Dealing, comments:
"The strong rally in the FTSE at the beginning of the year has been driven primarily by
improved investor sentiment as a result of the latest euro zone measures to bring stability to government debt markets.

"Investors are confident international markets will continue to offer opportunities for direct investment, with three quarters of investors (74.5%) now expecting the EU will remain intact, with no countries forced to drop out in 2013. Domestically, the majority (78.8%) of investors expect the Bank of England Base Rate will remain at its historic low of 0.5% this year, and as such there is increased likelihood we will see more savers looking to achieve higher returns through investment in the stock market."

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