BRITAIN offers excellent opportunities for investment, according to Morgan Grenfell Asset Management.
In its Monthly Investment Outlook for May, the fund management company said: 'Britain is our favoured world equity market due to the attractive valuations against both earnings and gilts. Our policy is to be overweight. The FTSE index has recently rallied to above 3,200 and is now in the middle of its trading range.' Morgan Grenfell said it expected economic growth in Britain to be slow in 1995 compared with last year, but corporate earnings were expected to grow at more than 10 per cent.
This would lower prospective price earnings multiples to fall to around 11.5 times.
'Our enthusiasm for the market is tempered by political worries which could continue to undermine both the market and sterling,' Morgan Grenfell said.
A correction on Wall Street was another factor which could stall the British stock market.
Investment advisory firm Towry Law International also likes the British market. It said companies were looking forward to double-figure earnings growth and average dividend increases of nine per cent.
