Strong returns for UK equities year to date

UK equities experienced a small decline in September, probably in large part due to the

strengthening of sterling against the US dollar and the euro. Health Care and Energy were

the two sectors most affected with falls close to double figures. On the other hand, Materials

made a strong positive contribution, most likely responding to political measure taken in

China to improve economic confidence. Other sectors did not experience any strong moves.

Over the year to date the market has almost achieved double digit returns with some

sectors significantly above that threshold. Energy and Information Technology are the only

sectors to have had negative returns so far.

The forecast for dividends to be paid by all UK listed companies next year dropped slightly

over the course of the month as a number of companies saw their estimates trimmed.

These cuts outweighed the increases for two large resource companies.

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