While sentiment towards the UK market has improved over the past year, Barclays (BARC.L) strategists say the stocks still look under-owned and cheap, highlighting a number of companies that are likely to benefit from a positive economic backdrop in the UK.
Labour’s landslide victory in July’s general election, as well as an improving economic picture, have buoyed UK markets this year.
The FTSE 100 (^FTSE), in which the UK’s biggest companies are listed, is up 7.9% year-to-date. The broader FTSE All-Share (^FTAS) index, which encompasses the FTSE 100, FTSE 250 (^FTMC) and FTSE SmallCap (^FTSC) indices, is up 7.8%.
However, Barclays European equity strategy team said in a note published Wednesday, that “some of the goodwill the country was enjoying after the election has dissipated on gloomy government messaging around the fiscal/growth situation”.
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Prime minister Keir…
