Valuations attractive as equities fall back further

Steep falls in UK equity markets have led to value emerging for investors for the first time since t...

Steep falls in UK equity markets have led to value emerging for investors for the first time since the early 1990s, according to HSBC strategists. Although the market could yet make new lows in the short term, analyst at the group Steve Russell says FTSE 100 valuations are starting to look compelling as it nears 4,000, and predicts the index to hit 5,000 by the end of the year. Russell concedes his tip appears fairly aggressive at present but says it reflects HSBC's forecasts for a 15% recovery in earnings in 2003, which should be anticipated by the market in Q4 2002. However, the pace of...