Charles Stanley makes New Year predictions

Charles Stanley Stockbrokers today announced its annual Top 10 stock selections with the news that its selections for 2006 have outperformed the FTSE 100 index by 120 per cent.

Between 13 December 2005 and 12 December 2006, the share values of the 2006 Top 10 increased by 24 per cent, while the FTSE 100 rose by 10.9 per cent.

Jeremy Batstone, Head of Private Client Research at Charles Stanley, said: “While we are delighted with the performance, the selections were never intended to comprise a portfolio. They were chosen on the basis that they would do well and in the round they certainly did.”

Performance was assisted in no small measure by Astra Zeneca’s purchase of Cambridge Antibody (up 92.7 per cent) and by the recent bid interest in Gallaher (up 30.7 per cent). Scottish and Southern Energy increased by 51.5 per cent, Intercontinental by 38.2 per cent and Barclays (itself the beneficiary of vague bid speculation) by 19.9 per cent. The smaller company selections delivered a divergent performance, Avanti increasing 21.9 per cent but XL Technology falling by 21.6 per cent. XL Technology remains however a firm favourite of the Charles Stanley analysts for the longer term.

In their 2007 forecast, the Charles Stanley analysts’ Top 10 for 2007 are:

ARM Holdings
Croda
Experian
Glaxo Smithkline
Northgate Information Systems
Premier Foods
Qinetiq
Royal Bank of Scotland
Caliber Global Group Investment Ltd
Tissue Science Laboratories

The team looks for the FTSE 100 to stand at 6,700 at the end of 2007 and the FTSE All Share at 3,400.