UK markets close in 5 hours 41 minutes
  • FTSE 100

    7,544.27
    +35.12 (+0.47%)
     
  • FTSE 250

    20,382.52
    -0.24 (-0.00%)
     
  • AIM

    933.06
    -1.05 (-0.11%)
     
  • GBP/EUR

    1.1864
    +0.0005 (+0.04%)
     
  • GBP/USD

    1.2024
    -0.0034 (-0.28%)
     
  • BTC-GBP

    20,052.47
    -62.69 (-0.31%)
     
  • CMC Crypto 200

    573.32
    -17.44 (-2.95%)
     
  • S&P 500

    4,297.14
    +16.99 (+0.40%)
     
  • DOW

    33,912.44
    +151.39 (+0.45%)
     
  • CRUDE OIL

    88.96
    -0.45 (-0.50%)
     
  • GOLD FUTURES

    1,790.60
    -7.50 (-0.42%)
     
  • NIKKEI 225

    28,868.91
    -2.87 (-0.01%)
     
  • HANG SENG

    19,830.52
    -210.34 (-1.05%)
     
  • DAX

    13,890.95
    +74.34 (+0.54%)
     
  • CAC 40

    6,584.29
    +14.34 (+0.22%)
     

‘Record cheap’ British stocks offer historic buying opportunity, says JP Morgan

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
FTSE 100
FTSE 100

Investors have been handed a significant buying opportunity after British stocks tumbled to "near-record cheap" levels following years of turmoil over Covid and Brexit, JP Morgan has said.

UK shares are at bargain prices in the wake of a run of significant underperformance according to the investment bank.

JP Morgan analysts added that as a result, the British market is likely to hold up better than rivals as an 18-month global rally cools.

Mislav Matejka, the bank’s chief equity strategist, said: “While we remain bullish on the global equity market direction, it goes without saying that a big chunk of the up-move has already materialised.

“UK equities could hold up better against a global equity backdrop that doesn’t show as dramatic up-moves as seen previously.”

London has languished behind rival stock markets since the Brexit vote in 2016, with shares held back by fears over the country's departure from the European Union and a lack of the fast-growing tech stocks that have driven US growth.

UK-listed companies have trailed 50pc behind their US peers in the past five years, and are 24pc behind European equities - even after stripping out industries such as banking and energy which are a bigger part of the British index.

The analysts also switched preference from the mid-cap FTSE 250 to the blue-chip FTSE 100, saying the top index’s high proportion of exporters would help it perform better.

The index of London’s biggest listed companies has still not recovered from the tumultuous losses it incurred in early spring 2020, when fears over the pandemic routed markets.

Mr Matejka and his team predicted the FTSE 100 would be given an extra tailwind by a weakening of sterling, which tends to boost the internationally-focused index’s members.

They said UK stocks would also likely be able to shrug off the impact of a rise in interest rates, with the Bank of England widely expected to act soon after a surprise decision to hold fire last week.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting