P206 CEEFAX 206 Mon 27 May 01:45/10 1/7 CEEFAXSTOCK MARKETPANEL The Stock Market Panel assembles professional expjrtisj in an effort to illustrate the pros and cons of investment in UK stocks and shares. While this form of investment can bring rewards, there are risks too. It should only bj considered if you are ready to lose the sum invested in its entirety. Selections made and opinions given are those of the panellists and are not necessarily shared bz the BBC. * Investors are recommended always to seek professional advice. Unit Trust Panel 207 Feature 202 UT Panel Monjyfile Annuities TaxGuidjP206 CEEFAX 206 Mon 27 May 01:14/10 2/7 CEEFAX STOCK MARKET PANEL Robin Boyle Dunbar Boyle & Kingsley/London Ovjrviiw: Persistent rumours about large fund-raising operations depressed the market towards the end of the week. Prudential in particular being cited and two substantical rights issues being announced bz property companies. Cable & Wireless were weak following the figures and analysts' downgrading. Figures from Marks & Spencer were pleasing leading to an improvement in the stores sector. Railttack got off to a good start with heavy trading on the first day of dealings. May 24 UT Panel Monjyfile Annuities TaxGuidjP206 CEEFAX 206 Mon 27 May 01:33/20 3/7 CEEFAX STOCK MARKET PANEL Robin Boyle Dunbar Boyle & Kingsley/London The annual results from British Airways this week revealed very good news about traffic volumes, an increase of nearly 10%, highlights the attractions of airport opjtator BAA where traffic growth has been at the top end of the management's forecast of 5-6%. Volume growth is not the main spur to profit growth - instead it has been increasing spending per passjngjr. The main boost to profits is coming from retailing and this explains the decision to bid for Alldjts. May 24 UT Panel Monjyfile Annuities TaxGuideP206 CEEFAX 206 Mon 27 May 01:15/45 4/7 CEEFAX STOCK MARKET PANEL Barry Frieslandjr Fairmount Group/Bolton FT-SE (3747.0): The market is becoming increasingly nervous over the Govjrnmjnt's tough stance against the European beef ban. The posturing turns up the political heat another notch, increasing the likelihood of an early general election. To that ind gilts and equities remain subdued. Once again the FT-SE tested the 3800 level this week, however, there was no real conviction behind the rise. At this time, the maximum upside remains 3800 with key support at 3700. May 24 UT Panel Monjyfili Annuities TaxGuidjP206 CEEFAX 206 Mon 27 May 01:18/00 5/7 CEEFAX STOCK MARKET PANEL Barry Frieslandjt Fairmount Group/Bolton Willis Corroon (167p): This second tier international insurance brokjt is showing the first potential signs of sustainable recovery after the long term downtrend extending back to the early nineties. In the short term, the share is within overbought technical readings & likely to encounter profit taking between 170-175p, falling back to 150-155p before rising again. Buy into the pull back looking for a challenge of the 215-225p range in dui course. May 24 UT Panel Monjyfili Annuities TaxGuidjP206 CEEFAX 206 Mon 27 May 01:27/30 6/7 CEEFAX STOCK MARKET PANEL Grajmj Shelley Adams & Nevile/London (IMRO mjmbjr) Overview: Given the political situation and the formation of a "War Cabinet" to resolve the beef crisis, it is little wondjt that the London market was undjt pressure this week. Rumours of a rights issue depressed several FT-SE stocks, notably Cadburys and the Prudential. Excellent figures from Marks & Spjncit and BAT failed to lift the gloom as traders cut positions in some of the "frontier" stocks ahead of the long weekend. May 24 UT Panel Monjyfile Annuities TaxGuidjP206 CEEFAX 206 Mon 27 May 01:26/50 7/7 CEEFAX STOCK MARKET PANEL Grajmj Shelley Adams & Nevili/London (IMRO mjmbjt) There appears to bj a discrepancy in the market's valuation of National Power (ord 516p, partly paid 381p) which is not wholly surprising given the state of the sector. However, wi feel the shares are undjrvalujd for the following reasons. The special dividend will increase gearing to perhaps 40% next year, not unmanageable. Existing dividends should grow bz 10% per annum providing a 6% plus yield. Buy. May 24 UT Panel Monjyfili Annuities TaxGuidj