Defensives likely to bounce, says Rensburg's Hall

Defensive stocks could bounce in the short term as many are now priced too low, says Rensburg's Mark ...

Defensive stocks could bounce in the short term as many are now priced too low, says Rensburg's Mark Hall. The Rensburg UK Select Growth trust manager says with little new money coming into the market investors sold down positions in defensive names in order to generate capital to participate in the recent cyclical rally. "This means in absolute terms many defensive stocks, such as food producers and companies like Unilever and Diageo have now gone too far," says Hall. "There is now a strong possibility we will see a bounce in those sectors which did not participate in the recent rally."