Jersey Investment Manager Bullish On Stocks

Investors Offshore, London

22 April 2003

Jersey-based asset management firm Ashburton (Jersey) Limited says in its latest investment perspective report that equities should rise and that Asia looks attractive.

Ashburton's global investment strategist, Peter Lucas, believes that the next major move in share prices will be upwards and Asia is his favoured region.

"Although we believe that the stockmarket recovery will be broad based, albeit only for a short period, particular mention must be made of Asia. Growth in China remains impressive as the government continues to pursue its objective of rapid industrialisation," says Lucas.

He believes that the success in China would be the impetus for other countries in the region and Asia was likely to be 'the healthiest region for sometime to come'.

However writing in Ashburton's quarterly guide to the global markets, Mr. Lucas noted that equity investment remained a high-risk environment.

"Stock selection continues to be something of a minefield with almost every day producing negative profit announcements or corporate scandals. Most importantly, the long term trend for share prices is either sideways or down, with the possible exception of Asia, and hence if we buy equities, we will be swimming against the tide," he says.

Although equities have probably seen their final low for this cycle, any ensuing recovery was likely to prove no more than a rally in a longer term sideways move, added Lucas. Ashburton's equity weighting in its Asset Management Service remains at 20 per cent with over half this invested in Asia.

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