Business & Investment

AJ Bell: 7,750 points from FTSE100 to the end of 2022

FTSE 100 hits record highs in 2022: AJ Bell predicts that the Best Equity Index will reach 7,750 points next year, despite its current weak performance.

  • The FTSE 100 Index reached a record closing price of 7,877.45 in late May 2018.
  • According to the analysis, the rate of return on capital for the FTSE 100 and 250 in 2020 was low.
  • Shell, Fuller, Smith & Turner are one of the recommended purchases for the FTSE 100.


The FTSE 100 should finish next year within 130 points of its record rating and is predicted by analysis by a major investment company.

Manchester-based AJ Bell predicts that the Best Equity Index will end in 2022 at 7,750 points. This is slightly below the current 7,200, but below the record closing price of 7,877.45 in late May 2018.

We also predict that the total revenue of the “Footsie” company will double from 2016 levels and the dividend will be at least 20% higher.

Behind the scenes: AJ Bell predicts that the FTSE 100 will end 2022 with 7,750 points.

However, AJ Bell’s data analysis, separate from Refinitiv, found that both the FTSE 100 and FTSE 250 were in the lower half of the International Equity Index at 9.8% and 10.6%, respectively, when measured at this year’s capital returns. rice field.

This is contrary to returns of over 20% on the S & P 500, the Russian Trading System, the CAC 40 in France, and the S & P Bombay Stock Exchange (BSE) 100 in India.

The London market plunged in February and March 2020 as it spread around the world before the coronavirus closed last year and had the worst results since the 2008 global financial crisis.

Poor Performance: According to AJ Bell's analysis, both the FTSE 100 and FTSE 250 were included in the lower half of the International Equity Index, as measured by this year's capital returns.

Poor Performance: According to AJ Bell’s analysis, both the FTSE 100 and FTSE 250 were included in the lower half of the International Equity Index, as measured by this year’s capital returns.

Investors attributed their weak performance to the fact that they include many companies in the industry that have been severely hit by the problems posed by the pandemic and post-Brexit trade agreements.

It also includes most tech companies that have benefited significantly from millions of people working from home, shopping online, and meeting on video conference platforms over the last two years. Not done.

Russ Mold, investment director at AJ Bell, said the cheap value of the FTSE 100 goes beyond unpredictable (oil and miners), indigestible (banks and insurance companies), and pale colors, at least so far. He said it might be worth it because it’s a mix of things. Because ESG screens are involved (cigarettes, oil, miners, bookmakers, defense stocks).

Recommendation: One of the four stocks AJ Bell has proposed to investors to postpone funding is the Royal Dutch Shell, which was heavily impacted by the fall in oil prices last year.

Recommendation: One of the four stocks AJ Bell has proposed to investors to postpone funding is the Royal Dutch Shell, which was heavily impacted by the fall in oil prices last year.

“Therefore, skeptics may argue that it is difficult to find an incremental buyer for a particular stock, as many investors run ESG screens on many FTSE 100 stocks and simply turn their backs. . “

He also said that next year’s low forecast earnings and dividend growth “may not set pulse competition”, but due to the composition of the companies on the index, if there are commodity prices and interest rates, next year will be the best performance. The yield curve will be steeper, with an increase that can be one of the.

One of the four stocks AJ Bell has proposed to investors to boost their money is the Royal Dutch Shell, which was heavily impacted by the fall in oil prices last year.

However, following the recovery in oil prices due to the resumption of the economy in 2021, the group has regained profits and recently announced a large-scale share buyback program.

The other three stocks recommended by the company are Pub Group’s Fuller, Smith & Turner, medical parts manufacturer Smith & Nephew, and Uranium’s Yellowcake.

Mr. Mold added that the FTSE 100’should be able to provide sufficient short-term earnings growth and should be able to do so from the start of a multiple of the low ratings.

“This is in contrast to markets like the United States, which are full of technology, social media, internet and biotechnology stocks that offer long-term earnings growth prospects from the starting point of multiples of high ratings. Package will be jammed tomorrow. High price.’

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AJ Bell: 7,750 points from FTSE100 to the end of 2022

https://www.dailymail.co.uk/money/markets/article-10279757/AJ-Bell-FTSE-100-end-2022-7-750-points.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 AJ Bell: 7,750 points from FTSE100 to the end of 2022

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