Market Commentary September 2013

Category: Market Commentary

27-09-2013

Please find this month's Market Commentary newsletter which contains our view on the stock market based upon fundamental and technical analysis along with some recommended investments for the current market.

Since our last market commentary, in which we remained equalweight on equities, the FTSE 100 has risen 67 points (1%). This was primarily the result of a relief rally based on 1) an armed conflict in Syria being thwarted by Russian political manoeuvring, delaying a major source of uncertainty for the markets, and; 2) the FED deciding to not "taper" its QE programme as was expected.

Our buy recommendation on Shire Plc at 2051p in May has been rewarded with an earlier than expected gain of 20.6%. Bid rumours have driven up the FTSE 100 drugmaker following press reports that is has hired investment bank Lazard (amongst others) to defend the company from a hostile bid from an unnamed player from across the Atlantic. Irrespective of its success, we are holding on for further gains ahead with Morgan Stanley recently publishing a 2750p price target.

Our decision to stick with our previous recommendations last month paid off handsomely with British American Tobacco rising 1.65%, Imperial Tobacco up 7.3% and iShares Emg Mkts Select Dividend up 4.9%. Our EADS recommendation rose 8.9%.

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