Barclays Detects Investor Confidence in FTSE

by Peter Wakeford
Posted by Hannah on 29 July 2008
Barclays Detects Investor Confidence in FTSE

More people are predicting rises on the indices than there are forecasting falls, the research shows.

Despite recent drops in stock value, investors remain upbeat about the FTSE indices.

Barclays Wealth, the bank's stockbroking arm, claimed today that 47 percent of investors predict a FTSE rise in the next three months. The confident mood comes despite the continuing credit crunch, which has badly hit the value of shares.

Over recent weeks, the FTSE indices, which include the FTSE 100 and the broader FTSE All-Share exchange, have wavered in and out of bear market territory, or, 20 percent below the value of the index in question's previous high point.

Bearing these adverse conditions in mind, some investors are remaining sceptical, with 41 percent predicting further FTSE drops and 12 percent expecting the indices to stay the same.

Des Byrne, head of Barclays Stockbrokers, said: "It is encouraging to see investors remaining bullish despite recent market volatility. While we would expect our clients to become more cautious there are bargains to be had and investors shouldn't lose faith now. Although the findings do reveal that two-fifths are still wary, and if market volatility continues this level of caution is likely to persist."

In contrast to the upbeat Barclays investors, the International Monetary Fund is remaining sceptical regarding the worldwide economic outlook. In its Global Financial Stability Report, released this week, the body declared that the financial "turmoil" is set to continue in the near future - with no end in sight for the credit crunch.

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