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FTSE 100 could hit 10,000 if it can shake off Brexit risk premium

By Alexander Bueso

Date: Thursday 25 Apr 2019

FTSE 100 could hit 10,000 if it can shake off Brexit risk premium

(Sharecast News) - For the top-flight index to reach the 10,000 point mark by end-2020, the UK share market needs to either rid itself of the current risk discount associated with Brexit or be carried aloft by a global equity bubble, a top research team said.
In a research note sent to clients, strategists at Deutsche Bank said the possibility of the latter was "plausible", even if "unlikely".

Either of those two scenarios, they explained, would result in low-to-modest growth in FTSE-100 listed companies' dividends per share or allow share prices to reconnect to DPS trends.

"This outcome is plausible, but not likely as it requires too big a "leap of faith," the analysts said.

What was indeed likely, they went on to say, were 20% returns by end-2020, although even then the FTSE 100's dividend yield would remain atop 4%.

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