UK overweight defensives

The UK market is poorly placed to benefit from a recovery in 2002, according to Merrill Lynch. It argues that on a global basis, the All-Share is overweight defensive sectors, a key reason it has performed well during the recent market correction, but underweight cyclicals. In addition, it suffers from too much stock concentration with the 10 largest companies making up 45% of the index, according to Matthew McKelvey, member of the global equities team which manages the Merrill Lynch Global Titans fund. As of the end of December 2001, the UK was overweight the MSCI World index by 6.7...