Stockmarket rally is "overdone" says Hendersons

The biggest market recovery in a decade has left shares overpriced given the existing state of the UK and other major economies, warns Richard Prew, Henderson's director of UK equity retail growth. "The market has rallied too far for the fundamentals and the more this continues until the year end, the more difficult next year looks," he says. Prew says he expects corporate profits growth to be near nil in 2003, compared to the census forecast of 13%. True, some big-cap firms are already importing improvements in turnover and profits on a quarterly basis, and directors b...