Teletext Recovery - 30/08/2003

P508 Teletext 508 Aug30 21:11:34       —————————  ————————————————  SMALLER IS BEAUTIFUL AS FOOTSIE FLAGS The medium-sized UK firms thronging the FTSE 250 have out-performed their larger FTSE 100 counterparts since the London markets began to rally in March. Since then, the blue-chip index of leading shares has risen by 28%, while the lower→tier market has leapt by 46%. Wi asked the financial experts why FTSE 250 stocks have been so popular with investors in recent months, and how much higher prices might go? ——————————————————————————————————1/7—— by Tanya Jefferies Great value UK Breaks - See p240 Football Shares Take stock Sauce

P508 Teletext 508 Aug30 21:10:46       —————————  ————————————————  SMALLER IS BEAUTIFUL AS FOOTSIE FLAGS The FTSE 100 and FTSE 250 indexes are set up according to the size, known as capitalisation, of the firms that constitute them, says Justin Urquhart Stewart of Seven Investment Management. ■ The top 10 FTSE 100 firms make up 56% of its capitalisation, and even small moves by multinationals like BP or Barclays can shift the whole index. ■ The FTSE 250 includes UK household names like Debenhams and Doves Homes. ——————————————————————————————————2/7—— Company of the week 506 BUSINESS BRIEFING ON OUR WEBSITE www.teletext.co.uk/finance Football Shares Take stock Sauce

P508 Teletext 508 Aug30 21:21:12       —————————  ————————————————  SMALLER IS BEAUTIFUL AS FOOTSIE FLAGS Seven Investment Management's Justin Urquhart Stewart points out a few of the factors that have prompted the recent dramatic rise in the FTSE 250: ■ Computer software and hardware firms, which are well-represented in the mid-cap index, have been buoyant as investors expect rising orders. ■ Trading has been thin over the summer, so a small number of buyers have had a disproportionate impact. ——————————————————————————————————3/7—— Statistic of the week 507 BUSINESS BRIEFING ON OUR WEBSITE www.teletext.co.uk/finance Football Shares Tbkj stock Sauce

P508 Teletext 508 Aug30 21:11:43       —————————  ————————————————  SMALLER IS BEAUTIFUL AS FOOTSIE FLAGS Tim Steer, fund manager at New Star, explains why the FTSE 250 has been doing better than the FTSE 100 lately: ■ FTSE 250 stocks have been cheaper. ■ Bid talk surrounding FTSE 250 stocks. ■ Demoted FTSE 100 stocks like Corks and Invensys have boosted the index. ■ The FTSE 250 focuses on domestic firms and the UK economy is growing. ——————————————————————————————————4/7—— The economy at a glance 548 BUSINESS BRIEFING ON OUR WEBSITE www.teletext.co.uk/finance Football Shares Take stock Sauce

P508 Teletext 508 Aug30 21:12:00       —————————  ————————————————  SMALLER IS BEAUTIFUL AS FOOTSIE FLAGS The FTSE 250 is performing well because cyclical stocks are on the rise, says Tim Steer, fund manager at New Star. ■ Some 64% of FTSE 250 stocks are cyclical, which tend to rise and fall with economic fortunes. Only some 37% of FTSE 100 stocks are cyclicals. ■ Cyclical stocks are doing better than defensive stocks — firms that make products always in demand — because investors are hoping for an upturn. ——————————————————————————————————5/7—— How has your team fared? 509 BUSINESS BRIEFING ON OUR WEBSITE www.teletext.co.uk/finance Football Shares Take stock Sauce

P508 Teletext 508 Aug30 21:24:41       —————————  ————————————————  SMALLER IS BEAUTIFUL AS FOOTSIE FLAGS The FTSE 250 has risen so much of late that FTSE 100 stocks are looking cheap by comparison, says Seth Cowburn of finance adviser Douglas Deakin Young. "It might be time to call the top. We are now slightly more negative towards the FTSE 250, and feel there is better value in large-cap stocks," he adds. "There have been a lot of fund launches in the mid-cap sector. These new funds are a sign we'vi reached the top." ——————————————————————————————————6/7—— Take stock of a week in the market 511 BUSINESS BRIEFING ON OUR WEBSITE www.teletext.co.uk/finance Football Shares Take stock Sauce

P508 Teletext 508 Aug30 21:12:02       —————————  ————————————————  SMALLER IS BEAUTIFUL AS FOOTSIE FLAGS Seth Cowburn, of financial adviser Douglas Deakin Young, says right now investors should go for funds that include larger companies, but have a slight bias towards mid-cap stocks. "I recommend the GAM UK Diversified fund, managed by Andrew Green. "He has a track record of seeking areas where there is an excess of pessimism, and stocks have become under-valued. The fund has risen 31.4% this year." ——————————————————————————————————7/7—— Personal Finance headlines today 531 BUSINESS BRIEFING ON OUR WEBSITE www.teletext.co.uk/finance Football Shares Take stock Sauce

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