Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more


  • Comment
The FTSE 100 index gained a modest 3.3 points during last week, retaining its position above the 4,000 level, at 40...
The FTSE 100 index gained a modest 3.3 points during last week, retaining its position above the 4,000 level, at 4028.1. The index had recorded new highs in the early part of the week before falling back a little on weakness in international equity markets.

The chancellor's decision on Tuesday to remove tax credits on share buy-backs and special dividends associated with takeover bids also contributed to reduced market sentiment in the latter part of the week. It is probable that the Inland Revenue timed the announcement to stop Reuters, the media and information group, from proceeding with an innovative £613m payback deal to shareholders.

The share buy-backs and special dividends schemes, used by companies to give capital back to shareholders and sweeten acquisitions, have become widely used in recent years, particularly in the banking and utilities sectors. However, after an initial fall in the FTSE 100 index, the market recovered reflecting the fact that this action was widely anticipated. Government action was also less tough than it could have been - special dividends not linked to takeovers will still attract the tax credit.

There is plenty of economic data due this week to keep the market's attention, with investor's likely to be particularly interested in wage inflation data following last week's disappointing news on underling retail price inflation, which crept up from 2.8% to 2.9%.

Mhairi Mackelworth, AMP Asset Management.
  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.