Banks back in investors' sights as confidence rises

Published on Sunday 21 June 2009 21:42

SHARES in banks are potentially set to rise as the equities market enjoys a surge in professional investor confidence.

A new poll of private client investment managers and stock-brokers revealed banks are one of the top three sectors for buy opportunities, topped only by oil and gas and pharmaceuticals. This compared with only 4 per cent of respondents who believed that the automobile industry was a current buy opportunity.

The APCIMS/ComRes poll found that 66 per cent of respondents are expecting increased investment in UK equities over the next 12 months, while there will also be a movement from cash into corporate bonds over the period.

Mike Lenhoff, chief strategist for stockbroker Brewin Dolphin, said efforts to keep the global economy moving were proving successful although he warned against too much optimism.

"Bond and equity markets are reflecting a growing conviction that policymakers the world over will be successful with their efforts to reflate the global economy. Indeed, we may be going through the trough of the recession right now. That said, the prospect of recovery does not mean plain sailing ahead."

The Association of Private Client Investment Managers and Stockbrokers intends to run the poll on a quarterly basis.