AGL 37.60 Decreased By ▼ -0.55 (-1.44%)
AIRLINK 122.67 Increased By ▲ 1.16 (0.95%)
BOP 5.73 Decreased By ▼ -0.12 (-2.05%)
CNERGY 3.72 Decreased By ▼ -0.03 (-0.8%)
DCL 8.56 Increased By ▲ 0.16 (1.9%)
DFML 40.26 Decreased By ▼ -0.63 (-1.54%)
DGKC 86.81 Increased By ▲ 2.21 (2.61%)
FCCL 33.45 Increased By ▲ 0.75 (2.29%)
FFBL 66.00 Increased By ▲ 0.50 (0.76%)
FFL 10.12 Increased By ▲ 0.07 (0.7%)
HUBC 103.96 Increased By ▲ 0.16 (0.15%)
HUMNL 13.40 Increased By ▲ 0.15 (1.13%)
KEL 4.52 Increased By ▲ 0.09 (2.03%)
KOSM 6.88 Decreased By ▼ -0.21 (-2.96%)
MLCF 38.50 Increased By ▲ 1.00 (2.67%)
NBP 60.15 Decreased By ▼ -0.10 (-0.17%)
OGDC 178.98 Increased By ▲ 6.73 (3.91%)
PAEL 24.75 Decreased By ▼ -0.05 (-0.2%)
PIBTL 5.70 No Change ▼ 0.00 (0%)
PPL 150.49 Increased By ▲ 8.80 (6.21%)
PRL 22.76 Increased By ▲ 0.04 (0.18%)
PTC 14.94 Increased By ▲ 0.20 (1.36%)
SEARL 66.10 Increased By ▲ 1.54 (2.39%)
TELE 7.06 Decreased By ▼ -0.08 (-1.12%)
TOMCL 35.65 Increased By ▲ 0.15 (0.42%)
TPLP 7.33 Increased By ▲ 0.04 (0.55%)
TREET 13.95 Decreased By ▼ -0.25 (-1.76%)
TRG 50.91 Decreased By ▼ -0.84 (-1.62%)
UNITY 26.48 Decreased By ▼ -0.12 (-0.45%)
WTL 1.23 Increased By ▲ 0.01 (0.82%)
BR100 9,644 Increased By 161.3 (1.7%)
BR30 29,031 Increased By 659.6 (2.32%)
KSE100 90,350 Increased By 1383.4 (1.55%)
KSE30 28,297 Increased By 469.3 (1.69%)

British investors increased their cash levels for a second month in April on concerns about the stability of world markets even as systemic risks from the euro zone receded, a Reuters poll showed. In a monthly survey of 14 investment managers, the average allocation to cash in their global balanced portfolios rose to 5.8 percent, from 5.6 percent in March and compared with 5 percent in January.
While the shift to cash indicates investors are building up defences against a possible market correction, exposure is still well below levels above 8 percent seen in the middle of 2012 when the European debt crisis raged. Exposure to equities slipped for the second consecutive month to 54.6 percent following several months of increases during a market rebound in the second half of 2012. But while money taken out of stocks is usually re-allocated to bonds, seen as a less volatile asset class and a safe haven in times of market stress, bond allocations have continued a slide that began late last year, to 25.4 percent.
"What is more risky? Bonds issued by indebted governments or corporations offering negative real yields and the prospect, at some point, of capital loss, or equities issued by mature, cash-rich, businesses, with strong earnings, progressive dividend policies and offering attractive real returns?" said Mark Robinson, chief investment officer at Berry Asset Management. However, while the rush to put bigger bets on stocks has paused in recent weeks, most of the investors believe the world has moved on from the near-panic seen in the wake of the financial crisis, even if some expect more volatility to come.

Copyright Reuters, 2013

Comments

Comments are closed.