Confidence in merchant shares soars
Published: 20 July, 2009
LONDON: Financial analysts view builders' merchant shares as a sound investment with excellent prospects post-recession.
Luke Kerr, manager at Old Mutual UK Dynamic Equity fund, singled out Travis Perkins as a good stock.
Mr Kerr said: "One area we are really focusing on is industries where volumes are at unusually depressed level." He cited housing and construction as an example on sectors where current transaction levels are way below normal recessionary levels.
"If we were to get back even to the levels of the 1990s recession that would result in a rise of 50% alone," Mr Kerr said.