REDUCED FEARS of a double dip recession could lead to the FTSE 100 hitting 6,900 by the end of this year, according to Standard Life.
Low-valued stocks, including those of BP and Barclays, could help to push the index up 15 per cent despite an anticipated bumpy ride, according to the Edinburgh-based firm.
The insurer correctly predicted the FTSE 100 would rise 13 per cent in the final quarter of 2010 to breach the 6,000 mark, at a time when it stood at 5,325 points.
The FTSE 100 yesterday continued strongly closing at 6,043.86. Homebuilder Galliford Try, as well as mining firm Vedanta Resources and electronics retailer Dixons, are also stocks picked by Standard Life that could benefit from sustained global economic reovery.
Chief executive of Standard Life Investments Keith Skeoch said: “Continued global economic recovery and UK equities’ high exposure to overseas earnings will deliver another year of strong cash flow and earnings growth for UK corporates.”
STANDARD LIFE’S 2011 STOCK PICKS
1 GALLIFORD TRY
2 VEDANTA RESOURCES