Analysts at the British bank Barclays predicted an explosive growth in quotations on world exchanges in 2021. Excerpts from the report are cited by CNBC.
According to the authors, next year most countries in the world will be able to successfully vaccinate the population, which will stop the coronavirus pandemic. Against this backdrop, many companies will begin to demonstrate profitability and achieve good results in terms of earnings per share (net income after taxes divided by the number of shares).
This criterion will most of all attract investors, analysts at Barclays say. In general, the European EuroStoxx 600 index will grow by 13 percent by the end of 2021. However, some companies will achieve even better results. Among them is the British oil giant HP, whose shares will rise in price by 63.7 percent, Dutch bank ABN AMRO with 50.6 percent and British telecommunications holding BT Group with 47.2 percent.
World GDP, in turn, will increase by 5.4 percent by the end of 2021, which will be the best result since 2010. For European companies, this will translate into an average 45 percent increase in profitability.
Pent-up demand from the population, support measures from governments and central banks, and low interest rates in most markets, giving access to cheap loans, will contribute to overall success.