UK stocks to push to 19-month highs this week

01 Mar, 2004

Britain's blue chip index will be looking to push to 19-month highs this week, powered by results from the UK's biggest banker HSBC, among a slew of others.
HSBC, the world's second-largest bank, is expected to report a 33 percent jump in pre-tax profit to around $12.906 billion, boosted by the inclusion of its biggest take-over, US consumer finance group Household International.
"HSBC could really get the market going. If it comes in better than expected, we will be looking at the market gathering a head of steam," said Mike Lenhoff, chief strategist at private client money manager Brewin Dolphin.
The FTSE 100 hit 19-month highs of 4,556.9 this week, but many see the market churning sideways as the impact of a weak dollar hits the FTSE's many big greenback earners and the prospect of further UK interest rate rises nags.
By 1100 GMT on Friday the FTSE was trading at 4,552.1 points, 0.8 percent higher on the week, with some market watchers predicting a rise to 5,000 points over the coming months.
But others were more cautious about the FTSE's ascent.
Alex Scott, analyst at Seven Investment Management, said, "There's difficulty in seeing what can drive it on from here... We're at the top of the trading range, and momentum could take it a little further, but valuations don't look dramatically appealing."
Also reporting full-year numbers on Monday is GKN, the British automotive and aerospace engineer. Investors will be poring over the effect of the dollar on the firm's earnings, given that the US accounts for around a fifth of its revenues.
Media and technology, one of the FTSE's better-performing sectors so far this year, will be in focus, with UK publisher Pearson forecast to report annual profits of around 31.9 million pounds on Monday.
The publisher of textbooks and the Financial Times said in December it expected to meet profit targets despite sharp declines in ad revenue at the FT. On Tuesday, Anglo-Dutch computer services firm LogicaCMG presents annual figures. The mid-cap tech stock is on course for remittance to the FTSE blue chip arena at the next quarterly rejig on March 10.

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