For Info Only28 Feb 2007 17:39
Wrong Page but same Family.
New Star manager sees FTSE 'near 7,000'
By Jonathan Boyd
Stephen Wittaker, joint chief investment officer and manager of New Star's UK Growth and Equity Income funds says he sees the FTSE index closing in on the key 7,000 points level by the end of the year.
The bullish view comes despite the index's second day of heavy losses.
It is currently trading down about 65 points at 6,221.
“We may see a little volatility in 2007, however, I foresee no reason why the equity market cannot finish the year in positive territory – probably near the 7,000 mark,” Wittaker says in a statement released by the provider
He views the current price swings as a "healthy aspect of equity market," and points out those who sold during the market downturn between mid-May to mid-June last year would have missed out on FTSE All Share total returns of close to 17% over 2006.
“If anything, the economic and corporate background today is more supportive than last summer," he continues.
"The market has managed to survive a high oil price, a slowdown in the US housing market and higher interest rates. We are currently in a phase where the US housing market is showing signs of recovery, oil is cheaper and central banks have rebuilt their monetary arsenals should the economy need assistance from lower interest rates.
"The big unknown is Iran but the impact of global politics on equity markets is alm