FTSE at 7,400 next year? BoAML tips strong rise

Analysts at the Bank of America Merrill Lynch have tipped the FTSE 100 to rise to 7,400 next year, citing the strengthening economy and an accommodating central bank as reasons why stocks can reach such highs.

In a note to clients, the group said UK stocks could rise 30% by 2015 as a result of positive factors, with the FTSE 100 hitting 7,400 next year. "We estimate UK equity market cap could rise by 30% by 2015," the note said. "We maintain our FTSE target of 7,100 for mid-2014, and introduce a target of 7,400 for FY14." The number chimes with a prediction from Old Mutual's Richard Buxton who said the FTSE 100 would trade between 6,500-7,300 points as we head into 2014. BoAML said in the note that while the UK economy is gathering pace, monetary policy will likely remain loose, suppo...