Large-cap bargains attract interest as profits increase

Large-cap stocks are trading on lower P/E ratios than their mid-cap and small-cap counterparts, attracting the interest of Credit Suisse Asset Management (CSAM) and Martin Currie. The Dow Jones Stoxx Large Cap 200 Index shows the projected price to earnings ratio for 2006 stands at 11.91 times, as opposed to 14.16 for the Mid Cap Index and 14.54 for the Small Cap. For Stewart Higgins, investment director at Martin Currie and a self-confessed stock picker, larger companies are looking attractive. This is due to valuation but also because many have restructured, cutting costs and improvi...