FTSE 100 down but up on the month

The FTSE 100 fell on Friday, as lingering uncertainty over future monetary policy led investors to book profits on a rally which saw the market hit near 13-year highs earlier this month.
By The Newsroom
Published 31st May 2013, 10:11 BST

The blue-chip FTSE 100 index was down by 0.9 per cent, or 58.33 points, at 6,598.66 points in early trading.

The index remains on track to record its 12th consecutive month of gains, with the FTSE 100 up 2.6 per cent in May.

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However, the FTSE 100 has been volatile this week due to worries the US Federal Reserve may soon taper economic stimulus measures that have helped drive a global equity rally this year.

Central Markets chief strategist Richard Perry said now may be a good time for investors to book profits on that rally, with the FTSE 100 up 12 per cent since the start of 2013, although he added the longer-term trends remained positive.

“With the increased volatility in equities, it would be wise to take caution. A correction in the equity markets are long overdue and taking profits at these sort of levels on some core investment holdings may not be a bad idea,” said Mr Perry.

Darren Easton, director of trading at Logic Investments, said if the FTSE 100 fell below the 6,600 point level, it could then drop down to the 6,500 point mark.

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EGR Broking managing director Kyri Kangellaris added he felt it was still too risky to buy into the FTSE at current levels.

“It’s still not really low enough for me to entertain buying stocks and I would look to take profits,” he said.