3 UK Shares Hitting New Highs
These three names, from three different sectors of the London exchange, are strengthening their recent gains, writes Alan Oscroft of The Motley Fool UK.
The FTSE-100 set a new high of 6,184 points on Tuesday, and is just a point below that at 6,183 at the time of writing. That takes the FTSE's record to 15 consecutive days above 6,000 and nine days above the 6,100 level. First day above 6,200? I wouldn't bet against it happening this week.
When the FTSE is hitting new highs almost daily, it's no real surprise that individual shares are doing the same thing. Here are three constituents of the FTSE indices that reached new closing highs yesterday.
Shares in investment manager Brewin Dolphin Holdings (London: BRW) hit a new closing high recently of 222p, up 50% over the last 12 months, illustrating again how the financial sector has come bouncing back.
Forecasts are fairly modest for the year to September 2013, putting the shares on a forward price-to-earnings (P/E) ratio of 16, which is a bit above the long-term FTSE average of around 14. But 2014 forecasts suggest earnings growth of over 15%, dropping the P/E to 13.
Forecasts that far out need to be treated with caution, of course, but it is indicative of renewed longer-term optimism for financial stocks. There are also dividend yields expected of 3.5% and better.
The latest of the homebuilders to hit a new 52-week closing high, Telford Homes (London: TEF) finished Monday at 212p.