Redmayne-Bentley goes for oil and gas stocks in difficult year

Forty one per cent of the 90 stockbrokers and investment managers that took part in the Leeds-based firm’s annual survey revealed that the two utilities would be their number one pick for 2012.

Twenty four per cent selected mining, 17 per cent technology and 14 per cent pharmaceuticals.

Allan Collins, investment consultant, said: “Our top sectors are oil and gas, mining and technology. We can also see the attraction in pharmaceuticals, healthcare and defensives in general, though the decent run in the market by some classic defensives could be reversed when the market turns into a more bullish mood.”

Almost half said that banks, along with general retailers at 41 per cent and travel and leisure at 22 per cent were market sectors to avoid.

A fifth of those surveyed tipped Vodafone, one of the world’s largest mobile phone groups, as their favourite FTSE 100 stock for the New Year, along with insurer Aviva in second place, and BP in third place. BG Group, the gas and oil exploration arm of the old British Gas, was rated fourth, while Xstrata, the mining giant and GlaxoSmithKline, the UK-based pharmaceuticals research company were ranked joint fifth.

Mr Collins added: “Sectors that we’re wary of are led by banking where the pressures just look too great to attract investment money, though traders no doubt will be active once again. We are cautious of the slowing and slimming-down of the financial sector in general, however some of the stronger insurance companies do look attractive.”

The survey revealed that across the firm there is an expectation that 2012 will not be anything other than volatile. Half of those asked said that they expected the FTSE 100 to finish higher in 2012 than it did in 2011, with over a third predicting that the market would finish somewhere between 6000 and 6500 points. However, almost a quarter surveyed thought that the market would finish lower next year with 24.5 per cent fearing a finish of 5500 or below.

De La Rue was a favoured share outside the big index and in overseas markets North America came out on top.