Uttoxeter Online Magazine

All Eyes East

After the recent volatility, global financial markets steadied last week with investors’ nerves soothed somewhat by positive economic data from both China and India, together with reassuring noises from US Federal Reserve chief, Ben Bernanke. Not that there weren’t some surprises and concerns though. BP’s share price plunged to a 14-year low at one point as President Obama launched a scathing attack on the company’s chief executive, Tony Hayward, leaving many investors fearful that BP would bow to political pressure and cut its dividend. Such a move would hurt many pension funds – both here in the UK and in the US – as the company accounts for around 12% of all dividend income from the UK market according to The Financial Times. On top, as a major constituent of the UK index, its share price fall has accounted for around 250 points of the FTSE100’s recent decline.

BP’s share price rallied significantly as the week progressed though and accounted for around 14% of total stock market turnover for the week, as sellers were matched with buyers. “At these levels the company is on our radar screen and we will be thinking about whether to take a position” commented UK fund manager Richard Oldfield of Oldfield Partners...............

contd.......

( The complete text of this weeks Financial Bulletin can be downloaded as a 'pdf' file here. )

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Extract from this weeks Financial Marketing Bulletin, issued by RBA Wealth Management Ltd.

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