Happy new year for FTSE as top shares climb
Hopes of a prosperous New Year were high in London today after blue chip shares rounded off 2003 with their first annual advance in four years.
The FTSE 100 Index of leading shares ended the year 6.5 points up at 4476.9, more than 13% ahead on last year and the highest level for 17 months.
Experts said the year had ended impressively in contrast to the negative performances in each of the past three years.
The overriding feeling among traders was that the market downturn had finally bottomed out, they said.
Senior quoting dealer at City firm IG Index, Will Armitage, said he expected share prices to bounce back about 50% between now and sometime in 2005, helped by low levels of unemployment and inflation.
Mr Armitage said the threat of terrorism is still likely to overshadow the stock market in 2004.
But disregarding that, the belief that the slump is over would draw more people into the market, he said.
The Footsie is expected to peak at about 4,980 during the year, with base interest rates unlikely to top 5%, he said.
“Next quarter, things are looking encouraging,” Mr Armitage added.
The Footsie started the year just below the 4,000 mark and rose above it during January.
Uncertainty caused by the impending conflict in Iraq knocked the stuffing out of the market, sending the index down to under 3,300 in early March.
But share prices recovered and climbed gently during the rest of the year as the decision by the US, UK and other coalition partners to attack Iraq helped to restore market stability.
