Nervous investors quit equity funds at record pace

Equity funds have now seen net outflows in four of the past five months, after more than two years of net inflows, the IMA said. Photo: Alamy

British investors pulled out a record £864m from equity funds, compared with monthly average inflows of £506m for the previous 12 months.

Equity funds have now seen net outflows in four of the past five months, after more than two years of net inflows, the IMA said.

Savers holding funds in tax-efficient Isas also gave up on shares, with £28m being withdrawn.

Not surprisingly, investors who continued to invest opted for safer havens, such as corporate bonds and balanced funds, which invest in a mixture of shares, bonds and cash.

Bond funds saw sales of £443m in November, a marked increase on its monthly average of £332m.

UK Absolute Return funds were the second most popular, with £164m in net retail sales in November, the highest level since June 2011 and well above the monthly average of £81m for the previous 12 months.

Financial advisers said investors always reacted with panic when markets wobble.

Mark Dampier at Hargreaves Lansdown said: "I am not surprised that investors have been selling out of equities. Every time you turn on the radio, the TV or open a paper there is something about the eurozone debt crisis.

"The public is pessimistic, and this is priced into the markets. Usually pessimism in the market means it is a good time to buy, but you can understand why investors do not want to take the risk."

Richard Saunders, chief executive of the IMA, said: "The second half of 2011 has seen a marked slowdown in fund sales from the exceptionally strong levels of the last three years, and there was no let up in November, which saw the lowest monthly net sales since October 2008."

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The price of oil soaring destabilize nervous market

Other companies travel came under pressure, too, in the midst of concerns rising costs of oil and threats for the tourism industry. TUI Travel and easyJet fell 2.8 240½p and 355½p respectively 10½.

Always on a theme by oil prices, Numis analysts cut their profits forecast for easyJet 210 million pounds to 166 million pre-tax profits of £. "The downgrade reflects our revised estimate of easyJet fuel costs after the recent spike in price and certain losses modest due to recent disorders geopolitical," said analysts, who kept their ratings on the transporter "hold."

Elsewhere on the index, concerns about a surge in costs of fuel and its potential impact on economic recovery took their toll on oil explorers and producers. BP fell 4¼ to 488½p, then Premier oil flat at £ 19.65 as RBS analysts suggest that it could bid to BP Wytch farm oilfield, Dorset, including the giant plans to sell oil.

Copper - often a barometer of economic demand – fell to its lowest in nearly a month, the miners were on the slide. Antofagasta and Xstrata has dropped from 70 percent to £ 13.13 and 62 percent to £ 13,47 respectively. Dragged the FTSE 100 down 73.23 points to 5923.53 and the FTSE 250 was 130.47 points to 11521.94.

Defensive again were doing their best to support blue-chips with Imperial tobacco and GlaxoSmithKline edges up to 10 p to £ 20.01 and 4 p to £ 11.80 respectively.

Pharmaceutical peer Glaxo, AstraZeneca, hangar 33 p to £ 29.76½ reports came just before the closing bell its medical devices unit had attracted the interest of bidders about 20, including medical technology companies and private funds. Sale of Astra Tech was first reported last November, and thought that he could fetch $2bn (£ 1 MD).

The theme of M & A, Diageo has fallen p 14-£ 11.85, analysts turned their attention to potential acquisition division of Fortune Brands spirits beverage company.

Manufacturer of gin Gordon, touted as a potential and analysts to Liberum said they expected to Diageo to buy as much 70pc of beam Global Spirits company that has Diageo brands such as bourbon label Jim Beam. Diageo has been on the trail of the acquisition of the end. Earlier this week, it has agreed to buy Mey Içki Turkey for £ 1 5.3, marking its acquisition of more than a decade.

Investors has proven riskier stocks, Lloyds banking Group lost 65½p 0.79 and Royal bank of scotland throw a 0.4 percent to 47.32.

Taking the tumble size, however, was Rexam. Whereas Red Bull may give you good wings, manufacturer of boxes for the energy drink is not flying as investors booked profits based on the results of the year. Despite posting them an increase in annual profit, Rexam sank 21.6 348.4 p.

Apart from making profits, the market also somewhat disappointed by the lack of details on Rexam plans to sell its Division of closures, what makes tops and lids for products such as beverage containers. "Even though the Declaration confirmed branch closures was for sale, there may be some disappointment that no further progress has been made since the news was released in December 2010," said analysts Seymour Pierce, who kept their rating on Rexam "buy."

On the second level, cable & wireless Communications jumped 2.86 percent 49.33 take first place after that saying that it would sell its operating activities in Bermuda Canada Bragg Group 70 m $ and announced a share of 100 m $ of redemption.

To join the telecommunications company in the midcap ranking was Capital & counties properties group. Developer said that it planned a joint venture for its redevelopment of several billion pounds of Earls Court in London. There were reports that Capco was in talks with family Kwok based in Hong Kong, which controls the Sun Hung Kai Properties, provide funding for the site. CAPCO said that he received interest in a joint venture of several of the parties.

As Capco also said he is progressing well in the planning application for the development of 8,000 - home, he ticked up 4.3 percent 148.8. This increase reflected by blue-chip real estate stock land securities, edged up to 6 to 741 p.

Gartmore was flat, 103 p as Fund Manager posted his final to merge with rival Henderson income statement.

Leading mid-cap latecomers was Logica. After having posted recipes of dishes throughout the year, the it services company slid 7.8 at 137½p.

Among small-caps Group Yell fell 0.1% to 7.6% after analysts from Barclays Capital preserved their rating "underweight" on Yellow Pages Publisher and reduce their price target to 5 percent to 8 percent. The broker describes recent results for the third quarter Yell "disappointing."

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The Korean war hit already nervous FTSE 100

"As if Irish and climbing woes fear of possible contagion were not enough, the situation on the Korean peninsula destabilized the Asian markets," said Giles Watts, head of the shares to the index of the city.

"In such a volatile climate, investors will observe carefully see how the United States and China will respond to the ever deepening of the tension between the two countries", he added.

As risk appetite decreases, stockpiled mines have been predictable laggards as they were also affected by fears renewed that China will intensify steps to tame inflation.

Vedanta Resources, Antofagasta and Kazakhmys threw a 101 p to £ 57.28, p £ 13.17 58 and 49 percent to £ 13.91 respectively.

The Korean war were not a great moment for Tesco - chain supermarket Tuesday hosted the last day of his journey in China and southern Korea analysts.

Earlier in the week, Coast capital analysts sent an optimistic expedition, saying the trip from the airport to Seoul illustrated "the remarkable achievement of Koreans in the development of a modern nation of urban and industrial" in the past 60 years.

Matrix analysts felt a little less casual. ""After two days in China and South Korea, analysts and investors are at a low ebb, but enthusiastic team Tesco is unlimited," wrote a Tom Gadsby sounding tired.

Tesco takes trip analysts as an opportunity to announce plans to almost double its central sales space and Europe is over five years, including improving small bookstores and hypermarkets.

With rivals such as Wal-Mart, Carrefour and Tesco spreads rapidly in emerging markets in a bid to offset the sluggish growth in Western Europe and to .Tesco United States throw 418.25 3.6 p.

Retailers were focusing on a score of Nomura. Analysts retained their "neutral" rating on the sector, saying that the recent sales data had been slowing.

"This can be confirmed by updates to future negotiations for Dixons Kingfisher, KESA, HMV, which, in our opinion, can highlight the negative like-for-like doing business with a cautious approach," they added.

Dixons lost 25.14, Kingfisher 0.02 throw 0.9 248.3 p, KESA Electricals was flat p 166,1 and HMV has dropped from 1.25 to 44½p.

Return among blue-chips, Group Man takes the fall more marked as obtained bear their claws into stocks financial.

The larger world listed hedge fund decreased 14-274½p despite a push of the Deutsche Bank.Le broker reiterated its "buy" rating on man and named the company as one of its top picks.

Fresnillo, pinworm Mexican metal precious, topped by a leader miserably short-Board, with 21% to £ 14.25, such as price or climbed as anxious investors of turned to more tangible.

Bundled counterpart, Petropavlovsk, was also minor hausse.Le Russian gold ticked up to 23 per cent to £ 10.66 as coverage of Bank of America - Merrill Lynch resumed with a prize "buy" rating and £ 17.00 cible.Analystes said that the stock was less than his peers because of disappointing production in recent quarters.

TalkTalk has also received a note from courtier.Elle acquired 0.7 to 154½p after Credit Switzerland has increased its rating of "outperform" of "neutral" said .Analystes shift in position reflects the new strategic orientation of TalkTalk on medium-term growth margin expansion rather than Subscriber. ""

Lower market Cineworld gained ½ 208½p evolution securities pointed out that Harry Potter and the relics of death: part 1 had shattered five records from ticket sales, according to Warner Bros..'This is excellent news for Cineworld,' said the dealer, maintain its "buy" rating.

AIM-listed ASOS was scheduled after Goldman Sachs raised his price target on online retailer to £ 20.00 to £ 17.00.

ASOS rose from 52% to £ 13.12.

GW Pharma spur profits climb

Shares of GW Pharmaceuticals shot up to 9½ 109½p after drug manufacturer has seen a surge in profits after the launch of its medicines derived from cannabis, Sativex British Columbia Colombia.

Medicine, dealing with spasms muscular sclerosis (MS) patients, launched in the United Kingdom revenue earlier this year, which helped throughout the year to GW Pharmaceuticals at £ 30.7 £ 24 m.12 m last year.

Thus the increase in sales of Sativex, GW also received a payment step 10 million pounds of Bayer, for approval of Sativex the UK.

Profit before tax was £ 4.6 m to £ 1.15 m last time.

GW has also announced that final phase, tests had begun with partner Otsuka, of Sativex for treating cancer pain.

Justin Gover, CEO of GW, said this potentially represented a greater chance than MS and could also allow to enter the u.s. market Sativex.

KBC Peel Hunt analysts reiterated their "buy" rating on GW, saying: the launch of the United Kingdom Sativex showed a viable route to market for medicines derived from cannabis.

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