Trafficmaster tops share chart

By DAILY MAIL REPORTER
Updated:

 

Choked roads mean jam today for investors. Trafficmaster, which warns you of congestion, is the top performer of the leading 350 UK shares in first-half 1999. It soared 218pc and, judging by worsening road chaos and incoherent transport policies, should go further.

Technology shares showed some of the best gains to June. So did stocks long regarded as dogs. Among the top 20 were Hillsdown, ahead 90pc, British Steel, up 85pc, and Lonmin, 82pc.

Trailing at the bottom were former high-flier Jarvis, which slumped 53pc as its rail growth story went sour, and Rentokil Initial, down 45pc. Boots slumped 26pc.

Banks lost the cushion of falling interest rates and drug stocks fell out of favour. Halifax drooped 8pc, Lloyds TSB barely moved, AstraZeneca fell 4pc, Glaxo-Wellcome 15pc. Utilities sagged, retailers Sainsbury fell 17pc and Marks & Spencer 11pc.

It is some time since so many unfashionable sectors advanced so far. Miner Billiton was the best performer of the top 10, climbing 80pc. The Footsie rose 7pc, but 38 of the 100 actually fell.

ABN Amro's UK strategist, Gareth Williams, says: 'In the second quarter, it became apparent that the UK was not going into recession and Asia was bouncing. So you could buy cyclical stocks with less risk.'

He thinks some builders and engineers still look cheap and some, but not all, technology and telecom stocks remain attractive. He sees the Footsie at 6500 by the year-end.

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