The fourth quarter report brings to a close a year of both volatile and poor overall equity market performance. Having domiNated performance in 1999, the technology and telecom sector underwent a sharp correction, with the techMARK 100 Index falling by 29% during the year. However, this masks the 46% rise to its peak during the first quarter of the year, followed by the 52% fall to the current level. In contrast, following a long period of dissapointing performance, defensive sectors produced a robust performance in 2000, with beverages, pharmaceuticals and retailers all showing sharp rises.
Whilst acknowledging the continuing difficult environment, the UK market does appear better placed for improved returns. Many of the falls that they have already seen will provide them with investment opportunities for the year ahead..